Q. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

  1. It is a Public Limited Government Company.
  2. It is a Non-Banking Financial Company.

Select the correct answer using the code given below.

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (c) Both 1 and 2

IREDA:
  • It is a Mini Ratna (Category–I) non-banking financial institution under the administrative control of Ministry of New and Renewable Energy (MNRE).
  • It is a Public Limited Government Company established as a Non-Banking Financial Institution (NBFC) in 1987.
  • REDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as NBFC with Reserve Bank of India (RBI).
  • REDA is primarily engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.
  • Motto: ENERGY FOR EVER
  • Objectives:
    • To give financial support to specific projects and schemes for generating electricity and/ or energy through new and renewable sources and conserving energy through energy efficiency.
    • To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency/ conservation projects.
    • To increase IREDA’s share in the renewable energy sector by way of innovative financing.
    • Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources.
  • Funding: IREDA generates its revenue through the interest and principal repayments from the projects it finances, as well as by raising funds from the market and through borrowings.