IREDA, a Government of India enterprise categorized as Mini Ratna (Category – I) under the Ministry of New and Renewable Energy, has signed a performance-based MoU with the Ministry of New and Renewable Energy, Government of India. This agreement aligns with the Department of Public Enterprises guidelines and outlines IREDA's strategic objectives for the fiscal years 2023-24 and 2024-25.
The Memorandum of Understanding (MoU) sets specific Revenue from Operations goals for IREDA, with Rs 4,350 crores targeted for FY 2023-24 and Rs 5,220 crores for 2024-25. Notably, the previous fiscal year saw IREDA surpass its Rs 3,361 crores target with a Revenue from Operations of Rs 3,482 crore.
The MoU also outlines key performance indicators such as Return on Net Worth, Return on Capital Employed, NPA to Total Loans Ratio, Asset Turnover Ratio, and Earnings per Share, as specified by the government.
The MoU was signed on August 21, 2023, at Atal Akshay Urja Bhawan in New Delhi, with Bhupinder Singh Bhalla and Pradip Kumar Das as signatories. Senior officials from MNRE and IREDA were present at the ceremony.
IREDA's CMD highlighted the company's impressive performance over three fiscal years, positioning it well to achieve its goals. The CMD pointed out a 272% increase in Loan Disbursements and a 30% rise in Profit After Tax in the first quarter of FY 2023-24 compared to FY 2022-23. The company also reduced Net Non-Performing Assets by lowering the ratio from 2.92% to 1.61% in Q1, FY 2023-24, showcasing sound financial management. These achievements demonstrate IREDA's commitment to financial stability while promoting renewable energy.
The CMD noted IREDA's consistent excellence with an 'Excellent' rating and more than 96 marks for the MoU in the past three fiscal years. As of August 21, 2023, the company has financed 3,137 Renewable Energy projects with a total loan sanction and disbursement of Rs 1,55,694 crores and Rs 1,05,245 crores, respectively, contributing to a 22,061 MW increase in Renewable Energy capacity.
