IREDA plans to launch IPO in 3rd quarter, says CMD PK Das

In a panel discussion organised by CII, IREDA CMD PK Das said that the IREDA is planning to launch IREDA IPO in the Q3 by December 2021
IREDA plans to launch IPO in 3rd quarter, says CMD PK Das

New Delhi: IREDA is planning to launch its Initial Public Offer (IPO) in the 3rd quarter in November-December 2021, CMD Pradip Kumar Das said on Friday. He was speaking in a panel discussion on "Financing India's Clean Energy Transition" during the 2nd edition of the Digital Conference & Exhibition on "Aatmanirbhar Bharat- Self-Reliance for Renewable Energy Manufacturing" organised by the Confederation of Indian Industry (CII). "IREDA is expecting to receive an equity infusion of Rs 1500 crore by September-October 2021, which was announced by Finance Minister in her budget speech 2021-22" Das added.

Speaking on future plans of IREDA and the renewable energy (RE) sector for the next five years, Das said that IREDA expects its loan book to grow from Rs 28,000 crores (approx.) to Rs 1,35,000 crores (approx.) by FY 2026, with financing to the entire value chain in RE sector. The company is targeting to achieve its market share of more than 40 percent of RE sector debt funding by NBFCs by FY 2026. Currently, IREDA has a market share of financing to the tune of 19 percent (approx.) of the total installed RE capacity in the country.

CMD reiterated that IREDA does not endeavour to make profit only, but to work in the larger interest of the RE sector as the mother organisation for RE development through financing and other means as mandated by the Ministry of New & Renewable Energy (MNRE). Further, he added that the survival of the RE projects could be driven by reducing project costs. It can be achieved through lowering the operation, maintenance, and finance costs for which IREDA is funding the RE projects at a very attractive rate. The company is reducing its lending rates continuously in line with prevailing market conditions.

As a part of 'ease of doing business', IREDA has successfully achieved an almost 30 percent reduction in processing time for sanction, disbursement, and documentation etc. In the recent past, IREDA had sanctioned three loan proposals without the borrowers visiting in person to the offices of IREDA. With these initiatives, several developers who had earlier left IREDA by prepaying their loans after commissioning their projects because of higher interest rates, are now coming back to IREDA because of attractive interest rates as well as ease of doing business and good governance.

Das also highlighted that IREDA as a nodal agency of MNRE is successfully implementing various ambitious schemes launched by the Govt. of India like the 12,000 MW CPSU phase-II Solar project scheme and Rs. 4,500 crore Production Linked Incentive (PLI) scheme for the Solar manufacturing sector. 

Sharing his views on reforms of distribution sector schemes, IREDA CMD underlined that the government is continuously working to resolve the issues being faced by various state utilities and discoms. Recently, the Cabinet Committee on Economic Affairs (CCEA) approved the marquee of Rs 3.03 lakh crores power distribution company reform scheme, wherein the government share will be Rs 97,631 crores.

Further, Das emphasized that trust factor in the fabric of Power sector value chain such as honouring Power Purchase Agreement (PPA), ensuring timely payment in line with Payment Security Mechanism etc., are to be sustained for which all the stakeholders (Developers, Lenders, Power Utilities, Discoms, Consumers, etc) have to come forward for shouldering their responsibilities.

Concluding his address, Das urged that it the time to grab the opportunity to accelerate the deployment of Renewable Energy to achieve India's target of reducing carbon emission to 33 percent in line with the Paris agreement.

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