In a landmark move to accelerate India’s clean energy ambitions, the Indian Renewable Energy Development Agency (IREDA) has signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), setting an ambitious revenue target of ₹82 billion (₹8,200 crore) for the financial year 2025–26.
The MoU, signed at Atal Akshay Urja Bhawan in New Delhi, outlines strategic performance goals for IREDA across financial, operational, and sustainability metrics. This agreement marks a significant step in aligning public sector enterprises with India’s renewable energy roadmap and the government’s broader decarbonization goals.
A Bold Target for a Greener Future
The ₹82 billion revenue target for FY26 reflects a sharp upward trajectory from previous years. For context:
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FY23: IREDA achieved ₹3,482 crore in revenue, surpassing its target of ₹3,361 crore
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FY24: Target set at ₹4,350 crore
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FY25: Target raised to ₹5,220 crore
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FY26: Now set at ₹8,200 crore2
This exponential growth plan underscores IREDA’s evolving role as a financial catalyst for India’s renewable energy sector, which includes solar, wind, hydro, bioenergy, and emerging technologies like green hydrogen and energy storage.
Signing Ceremony and Strategic Vision
The MoU was signed by Bhupinder Singh Bhalla, Secretary of MNRE, and Pradip Kumar Das, Chairman and Managing Director of IREDA, in the presence of senior officials from both organizations.
CMD Das emphasized IREDA’s strong performance over the past three years, citing:
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A 272% increase in loan disbursements
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A 30% growth in Profit After Tax (PAT) in Q1 FY24 compared to Q1 FY23
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A reduction in Net Non-Performing Assets (NPAs) from 2.92% to 1.61%2
These achievements reflect IREDA’s commitment to financial discipline, operational efficiency, and its growing influence in India’s energy transition.
Performance Metrics and Accountability
The MoU includes a comprehensive set of performance indicators beyond revenue, such as:
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Return on Net Worth
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Return on Capital Employed
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Asset Turnover Ratio
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Earnings Per Share
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NPA to Total Loans Ratio
These metrics are aligned with guidelines from the Department of Public Enterprises, Ministry of Finance, ensuring transparency and accountability in public sector performance.
IREDA has consistently earned an “Excellent” rating in MoU evaluations, scoring over 96 points in the last three financial years.
Financing India’s Clean Energy Revolution
As of August 2023, IREDA has financed 3,137 renewable energy projects, with:
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₹1,55,694 crore in cumulative loan sanctions
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₹1,05,245 crore in loan disbursements
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Supporting the addition of 22,061 MW of renewable energy capacity across India
These figures position IREDA as a cornerstone institution in India’s clean energy financing ecosystem.
The agency has also expanded its footprint by establishing a wholly owned subsidiary at the International Financial Services Centre (IFSC) in GIFT City, Gujarat, to tap into global capital markets.
Policy Alignment and National Impact
This MoU comes at a time when India is ramping up its efforts to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement. The government aims to achieve 500 GW of non-fossil fuel capacity by 2030, and IREDA’s enhanced targets are directly aligned with this mission.
MNRE Secretary Bhalla praised IREDA’s proactive approach and its role in promoting ease of doing business, digitalization, and automation in renewable energy financing.
Industry Reactions
Energy analysts view the MoU as a strong signal of India’s commitment to scaling up renewable energy financing. The ₹82 billion target is seen as both ambitious and achievable, given IREDA’s track record and the growing demand for clean energy infrastructure.
The move also sends a positive message to global investors and climate-focused institutions, reinforcing India’s position as a leader in sustainable development.
Sources: EPR Magazine, Energy Asia, IREDA Official MoU Portal
