The Ministry of Finance recently invited bids to select an advertising agency for listing and partial disinvestment in the Indian Renewable Energy Development Agency (IREDA).
About Indian Renewable Energy Development Agency (IREDA):
- It was set up as a specialized non-banking finance agency for the renewable energy sector.
- It is a Public Limited Government Company established as a Non-Banking Financial Institution in 1981.
- REDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as Non-Banking Financial Company (NBFC) with Reserve Bank of India (RBI).
- It is formed for promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.
- To give financial support to specific projects and schemes for generating electricity and/ or energy through new and renewable sources and conserving energy through energy efficiency.
- To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency/ conservation projects.
Q1) What is a Non-Banking Financial Institution?
A nonbank financial institution (NBFI) is a financial institution that does not have a full banking license and cannot accept deposits from the public. However, NBFIs do facilitate alternative financial services, such as investment (both collective and individual), risk pooling, financial consulting, brokering, money transmission, and check cashing. NBFIs are a source of consumer credit (along with licensed banks).