IREDA in partnership with its knowledge partner Boston Consulting Group (BCG) recently convened a Strategic Meeting focusing on key aspects of business expansion and initiatives aimed at cost reduction in fund utilization.
About Indian Renewable Energy Development Agency Limited (IREDA):
- It is a Mini Ratna (Category–I) non-banking financial institution under the administrative control of the Ministry of New and Renewable Energy (MNRE).
- It is a Public Limited GovernmentCompany established as a Non-Banking Financial Institution (NBFC) in 1987.
- REDA has been notified as a “Public Financial Institution” under Section 4 ‘A’ of the Companies Act, 1956, and registered as NBFC with the Reserve Bank of India (RBI).
- REDA is primarily engaged in promoting, developing and extending financial assistancefor setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.
- IREDA is the single largest "Green Financier" in the country. It caters to all technologies in the renewable energy sector and predominantly provides financing for the sector.
- Motto: ENERGY FOR EVER
o 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.
o To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency/ conservation projects.
o To increase IREDA`s share in the renewable energy sector by way of innovative financing.
o Improvement in the efficiency of services provided to customers through continual improvement of systems, processes, and resources.
o To strive to be a competitive institution through customer satisfaction.
· Funding: IREDA generates its revenue through the interest and principal repayments from the projects it finances, as well as by raising funds from the market and through borrowings.
Q1: What is a Non-Banking Financial Company (NBFC)?
An NBFC is a company registered under the Companies Act 1956engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by the Government or local authority or other marketable securities of a like nature. They offer various banking services but do not have a banking license. They provide banking services like loans, credit facilities, TFCs, retirement planning, investing and stocking in the money market. NBFCs are regulated by the Reserve Bank of India (RBI), the central bank of India.Generally, these institutions are not allowed to take traditional demand deposits. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself