Ireda sees 303% surge in loan sanctions, reaching Rs 17,860 cr in Apr-Sept

The company experienced a substantial rise in loan disbursements, which increased by 56 per cent to Rs 9,787 crore, up from Rs 6,273 crore in September 2023

The Indian Renewable Energy Development Agency Limited (Ireda) reported a remarkable 303 per cent increase in loan sanctions, reaching Rs 17,860 crore during the April-September period of the current financial year compared to the same period last year.

In a statement on Monday, the company said it experienced a substantial rise in loan disbursements, which increased by 56 per cent to Rs 9,787 crore, up from Rs 6,273 crore in September 2023.

As of now, the agency's outstanding loan book totals Rs 64,500 crore, reflecting a 36 per cent increase from Rs 47,514 crore in the same period last year.

Pradip Kumar Das, chairman and managing director (CMD) of Ireda, said, "Ireda's strong financial results highlight the increasing demand for clean energy financing and our dedication to supporting the green energy transition."

Ireda gets approval to raise Rs 4,500 crore through QIP

Last month, Ireda announced that it had received government approval to raise up to Rs 4,500 crore through the issuance of equity shares via a Qualified Institutions Placement (QIP). This approval, granted by the Department of Investment and Public Asset Management (Dipam), followed recommendations from a high-level committee.

The fundraising will proceed through the QIP method, allowing for a potential dilution of the Government of India’s stake in Ireda by up to 7 per cent on a post-issue basis, which will be executed in one or more phases.

The objective of this fundraising initiative is to bolster Ireda's capital base, allowing the organisation to enhance its financing capabilities for renewable energy projects and expedite India's shift towards clean energy.

"Approval from Dipam represents a critical step forward in our expansion plans," Das had said.

(With agency inputs)