IREDA seeks shareholder nod to raise borrowing limit to Rs 1.5 lakh crore

New Delhi: Indian Renewable Energy Development Agency (IREDA) has proposed to raise its borrowing limit to Rs 1.5 lakh crore and plans to seek shareholder approval for the same at its upcoming 38th Annual General Meeting (AGM) scheduled for August 7, according to an AGM notice dated July 14. The move marks a significant scale-up in the agency’s financing capacity as it aims to accelerate funding for Renewable Energy (RE) projects in line with India’s green energy ambitions.

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The proposed borrowing limit replaces an earlier cap that allowed IREDA to borrow up to 15 times its net worth. As of March 31, 2025, the company’s outstanding borrowings stood at Rs 64,740 crore, while its total loan book reached Rs 76,282 crore, the agency disclosed in its annual report for FY25.

Mortgage plan to secure fresh borrowings

To support the expanded borrowing capacity, IREDA is also seeking shareholder approval to mortgage or create a charge on its current and future movable and immovable assets. The special resolution, included in the AGM notice, will allow the agency to offer such assets as security for loans from domestic and international lenders, up to the proposed Rs 1.5-lakh-crore limit.

According to the company, the charge may be created in favour of banks, financial institutions, leasing companies, or other bodies corporate, on terms deemed fit by IREDA’s board. The funds raised will be used for business operations and to support India’s growing renewable energy sector.

Green financing target of Rs 5 lakh crore by 2030

The scale-up in borrowing is aligned with IREDA’s long-term vision. The agency’s Chairman and Managing Director, Pradip Kumar Das, announced during RE-Invest 2024 conclave that IREDA aims to provide Rs 5 lakh crore in debt financing by 2030. The commitment is part of IREDA’s broader strategy to enable large-scale clean energy deployment in India, from solar and wind to emerging sectors like green hydrogen and battery storage.

The agency has also expanded its operational footprint, including opening an office at GIFT City, Gandhinagar, through its wholly-owned subsidiary IREDA Global Green Energy Finance IFSC Ltd. The subsidiary is now registered with the International Financial Services Centres Authority (IFSCA) and authorised to offer foreign currency-denominated loans, the company said in its annual report.

IREDA’s role in record renewable capacity addition

India added 29.5 GW of renewable energy capacity in FY25 — the highest in a single year — taking the total installed capacity to over 220 GW. More than 100 GW of this is solar. IREDA, as the largest green-focused non-banking financial company (NBFC) in the country, said it played a pivotal role in enabling this expansion through timely and affordable financing.

The agency’s own financial performance in FY25 was strong, with loans sanctioned touching Rs 47,453 crore and disbursements reaching Rs 30,168 crore. Profit after tax surged nearly 36 percent to Rs 1,699 crore — the highest in IREDA’s history — according to its audited financial statements.

IREDA was also granted Navratna CPSE status by the Department of Public Enterprises on April 26, 2024, providing it with greater operational and financial autonomy as it scales up to meet India’s clean energy goals.

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