IREDA (Indian Renewable Energy Development Agency Limited) is a Government of India enterprise under the Ministry of New and Renewable Energy (MNRE).
Its main objective is to finance and promote renewable energy projects across India.
IREDA provides long-term and short-term loans for renewable energy, energy efficiency, and green infrastructure projects, supporting India’s clean energy transition.
Promote renewable & green energy
Provide affordable project finance
Reduce dependence on fossil fuels
Support India’s net-zero & climate goals
Encourage private participation in RE sector
Solar Power (Ground-mounted, Rooftop)
Wind Power
Hydro Power (Small & Large)
Biomass & Bioenergy
Waste-to-Energy
Green Hydrogen
EV & Charging Infrastructure
Energy Storage Systems
Energy Efficiency Projects
| Feature | Details |
|---|---|
| Ownership | Government of India |
| Ministry | MNRE |
| Loan Type | Project finance, term loans |
| Sector Focus | Renewable & green energy |
| Loan Tenure | Up to 20–25 years |
| Interest Rate | Competitive (linked to risk & project) |
| Currency | INR & Foreign Currency |
| Support | New + existing projects |
| Merits | Explanation |
|---|---|
| Govt-backed PSU | High credibility & trust |
| Long tenure | Helps reduce EMI burden |
| Sector expertise | Deep understanding of RE projects |
| Competitive interest | Lower than many NBFCs |
| Large ticket size | Suitable for big projects |
| Green focus | Supports ESG & sustainability |
| Demerits | Explanation |
|---|---|
| Sector-specific | Only renewable & green projects |
| Strict appraisal | Detailed due diligence |
| Longer approval time | Compared to private NBFCs |
| Project-based funding | Not suitable for working capital |
| Documentation heavy | Technical & financial reports required |
Private Limited Companies
Public Limited Companies
LLPs
State Government Entities
PSUs
SPVs (Special Purpose Vehicles)
Renewable / Green energy project
Statutory approvals in place
Power Purchase Agreement (PPA) preferred
Viable techno-economic feasibility
Experienced promoters or EPC tie-up
Adequate promoter contribution
Acceptable DSCR & IRR
Sound financial structure
No major credit red flags
Detailed Project Report (DPR)
Techno-economic feasibility report
Financial model & projections
PPA / Offtake agreement
Land & statutory approvals
Promoter & company details
Audited financials (if existing entity)
Solar & wind project developers
Renewable EPC companies
Green hydrogen players
Waste-to-energy entrepreneurs
State & PSU renewable projects
Large-cap green infrastructure firms
| Parameter | IREDA | Bank | NBFC |
|---|---|---|---|
| Sector focus | Renewable only | All sectors | Selective |
| Loan tenure | Very long | Medium–long | Short–medium |
| Approval speed | Moderate | Slow | Fast |
| Ticket size | High | Medium–High | Medium |
| Expertise | Very high | General | Limited |
Indian Renewable Energy Development Agency
Yes, it is a Government of India PSU under MNRE.
No, loans are provided to companies, SPVs, PSUs, and entities, not individuals.
Primarily project finance; working capital is limited and project-linked.
Yes, project assets & cash flows are generally secured.
Yes, project-based startups with strong feasibility can apply.
Up to 20–25 years, depending on project life.
Yes, subject to scale, aggregation, and commercial viability.
Not always mandatory, but strongly preferred.
Mostly for medium to large renewable projects, not small MSMEs.
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