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IREDA’s Overseas Office to Open in Gujarat’s GIFT City

The office would allow IREDA to avoid foreign exchange hedging costs. Over the past three years, the finance agency has been able to lower its Net NPAs to 2.03 percent from 7.18 percent.

February 27, 2023. By Anurima Mondal

With an aim to finance renewable energy projects in foreign currency, Indian Renewable Energy Development Agency (IREDA) is planning to set up an office in Gujarat International Finance Tec-City (GIFT City).

The overseas office at Gandhinagar would reportedly allow the finance agency to avoid foreign exchange hedging costs.

The announcement was recently made by IREDA Chairman and Managing Director Pradip Kumar Das during a panel discussion on ‘Scaling up Clean Energy Investment in Emerging Economies’ under the aegis of G20 events at the Ministry of New and Renewable Energy.

Emphasising the importance of the Green Taxonomy to raise a fund of approximately INR 25 lakh crore for green energy projects by 2030, Das suggested that insurance and superannuation funds can be mandated to invest 2 percent of their assets under management in green bonds to finance green energy projects.

Das talked about the journey and growth of IREDA. Over the past three years, the non-banking financial institution has been able to lower its Net NPAs to 2.03 percent from 7.18 percent and ensure the highest standards of corporate governance by implementing the 3Cs principles of Conviction, Commitment, and Clarity.

Calling IREDA a trend-setter for introducing unique financial products, Das highlighted that all the major multilateral and bilateral agencies including World Bank and KfW preferred to channel their funds through it. He requested the agencies to review their appraisal process for boosting financial support and reducing bottlenecks.

Concluding his speech, the IREDA CMD, said that the company would continue to play a motherly role in the sector through RE financing.

The panel discussion also had MNRE Joint Secretary Dinesh Jagdale and International Energy Agency (IEA) Chief Energy Economist Tim Gould, and other senior officials from ADB, NTPC, SECI and CEEW as the participants.

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