Approval for IREDA Listing in Capital Market Granted by CCEA:
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given the green light for Indian Renewable Energy Development Agency (IREDA) to be listed in the capital market. As a Central Public Sector Enterprise (CPSE) under the Ministry of New and Renewable Energy (MNRE), IREDA finances renewable energy and energy efficiency projects in India.
IREDA plans to raise funds through IPO in 2023-24:
According to media reports, IREDA is set to enter the capital market in the upcoming financial year of 2023-24. This move is aimed at raising funds for IREDA by issuing new shares, and the Department of Investment and Public Asset Management (DIPAM) will facilitate the listing process.
Decision to list IREDA supersedes 2017 ruling:
An official statement from March 17 revealed that this decision supersedes the previous ruling in June 2017, which allowed IREDA to issue 13.90 crore new share capital at Rs 10 each to the public through an IPO on a book-entry basis. The immediate decision was necessary as the government recapitalizes after a Rs 1,500 crore capital injection in March 2022.
IREDA IPO to unlock value of government investment and raise capital:
This IPO will help unlock the value of government investment and allow the public to acquire and benefit from a stake in a state asset. Moreover, it will enable IREDA to raise part of its capital requirements without relying on public finances, in line with its growth plans. This will also enhance market discipline and transparency in listing requirements and disclosures.
IREDA: Mini-Ratna CPSE financing RE and EE projects in India:
Established in 1987, IREDA is currently a Mini-Ratna (Type I) CPSE wholly owned by the Government of India. It was founded to finance renewable energy (RE) and energy efficiency (EE) projects in India and is registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI).
IREDA plays a crucial role in achieving India’s renewable energy targets:
The government’s target is to install 175 GW of renewable energy capacity by 2022 and 500 GW by 2030, in line with its commitments made under the Paris Agreement on Climate Change as part of its Nationally Determined Contributions (NDCs). IREDA plays a crucial role in achieving these renewable energy targets.
IREDA’s projects to create employment opportunities and promote sustainability:
IREDA’s implementation and operation of renewable energy/energy efficiency projects under its business plan will help create direct and indirect employment opportunities for skilled and unskilled labor. The GoI’s renewable energy targets align with IREDA’s goals, which aim to promote a cleaner and more sustainable future for India.
IREDA was established in 1987 as a Mini Ratna Enterprise of the Government of India. It operates under the administrative control of the Ministry of New and Renewable Energy.
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