IREDA signs MoU with Govt for FY 2023-24; sets revenue target of Rs 4,350 crores

New Delhi: Indian Renewable Energy Development Agency Limited (IREDA) on Monday signed a performance-based memorandum of understanding (MoU) with the Ministry of New and Renewable Energy (MNRE) for financial year 2023-24. The MoU, in alignment with Department of Public Enterprises (DPE) guidelines, outlines strategic targets that IREDA aims to achieve during the fiscal years 2023-24 and 2024-25.

The MoU was signed by MNRE's Secretary Bhupinder Singh Bhalla and IREDA CMD Pradip Kumar Das at Atal Akshay Urja Bhawan, New Delhi in the presence of senior officials from MNRE and IREDA.

The Govt. of India has set a revenue from operation target of Rs 4,350 crores for the fiscal year 2023-24 and Rs 5,220 crores for FY 2024-25. IREDA had achieved a revenue from operation of Rs 3,482 crores in the preceding fiscal year. The Govt has also defined key performance parameters including return on net worth, return on capital employed, NPA to total loans ratio, asset turnover ratio, and earnings per share, among others.

Das emphasized IREDA's outstanding track record of performance over the past three financial years, positioning the company well to achieve these ambitious targets. The company marked an impressive 272 percent jump in loan disbursements and a 30 percent growth in profit after tax (PAT) during the first quarter of FY 2023-24, compared to the corresponding period in FY 2022-23.

Demonstrating sensible financial management, IREDA also achieved a remarkable reduction in Net Non-Performing Assets (NPAs), lowering the figure to 1.61 percent in Q1, FY 2023-24 from 2.92 percent in Q1, FY 2022-23. These achievements underscore IREDA's dedication to maintaining financial stability while promoting the Renewable Energy sector.

IREDA’s track record of consistent excellence is evident by its 'Excellent' rating and over 96 marks secured for the MoU in the preceding three financial years. The company as on 21st August 2023, has financed 3,137 Renewable Energy projects loan accounts with cumulative loan sanction and disbursement to the tune of Rs 1,55,694 crores and Rs 1,05,245 crores respectively and has supported renewable energy capacity addition of 22,061 MW in the country.

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