• Written By Team_Embibe
  • Last Modified 26-07-2022

IREDA Full Form

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The IREDA full form in English is Indian Renewable Energy Development Agency Ltd, whereas, in Hindi, it stands for भारतीय अक्षय ऊर्जा विकास संस्था सीमित. IREDA is a well-established Public Limited Government Company, often referred to as a Mini Ratna. 

It is a Government of India enterprise and operates under the administrative control and purview of the Ministry of New and Renewable Energy (MNRE). IREDA was initially established as the country’s prominent Non-Banking Financial Institution, which was formed in 1987 to promote the concept of renewable energy in the public domain. 

Nature of IREDA 

IREDA works towards developing & extending all the necessary financial assistance in the current renewable energy projects. The underlying motto of the agency that it currently works with is usually promoted as ‘Energy For Ever.’ The agency was recently conferred with the prestigious ‘Green Urja Award for its constant efforts in developing the prominent project known as ‘Green Energy Financing.’ The Indian Chamber of Commerce (ICC) announced and gave the award, which helped IREDA get recognized as the leading financial institution for renewable energy. 

IREDA is notified in section 4A of the ‘Companies Act, 1956’ as the ‘Public Financial Institution.’ Certain amendments were later made in 2013 regarding the agency. In addition, it was also registered with the central bank of the country, the Reserve Bank of India (RBI), as the Non-Banking Financial Company (NBFC). It wasn’t until 2015 when IREDA was promoted to the status of (Category-I) by MNRE as the ‘Mini Ratna’ of the country. The primary objective of the organisation has always been to provide an innovative and seamless stream of financing in the associated sectors such as Environmental Technologies, Energy Conservation/Efficiency, and Renewable Energy. 

Objectives of IREDA 

Working towards generating electricity through renewable sources and conserving energy through energy efficiency, is the major objectives of IREDA. Promoting transparency in the operations to retain the trust of its customers through environmental technologies is also a great area of interest for the agency. 

In addition, implementing a robust quality management system to refine the overall quality of services eventually provided to the customers is also under the agency’s repertoire. IREDA also channels its constant efforts in the seamless up-gradation of its underlying capabilities and improving the relevant professional skills of all its employees. 

Relevant Commitments of IREDA

IREDA also works towards transitioning and expanding renewable energy in terms of scalability, affordability, and establishing the integral concept of sustainability in the ecosystem. Furthermore, it provides seamless financial support to solar energy, hydro, bio, and wind projects and serves all the customers in India. 

IREDA is exclusively committed to meeting the relevant requirements of information security that stem from its stakeholders, such as employees, customers, business partners, and shareholders. It aims to do so by precise implementation and regular upgrades in its Information Security Management System (ISMS). It is usually done through identifying, evaluating, and controlling the risks wherever necessary, paving the way for enhanced integrity. It also sets high standards regarding confidentiality, authenticity, and availability of its sensitive information assets while meeting legal and statutory requirements.

Roots and Functions of IREDA

Headquartered in New Delhi, the agency is currently headed by Mr. Pradip Kumar Das, who assumed the office as the chairman and managing director of the organisation. The mission of IREDA is to become a pioneering, competitive, and participant-friendly institution that works proactively towards financing and promoting the necessary self-sustained investment. Such investments are usually directed towards energy efficiency, renewable sources, and the relevant environmental technologies to promote sustainable development. 

Functions of IREDA 

Below mentioned are some of the essential functions of IREDA: 

  • To facilitate the financial help to all the relevant projects and schemes that work towards generating electricity or energy by incorporating renewable sources. 
  • To work proactively towards conserving all forms of renewable energy by efficiently using the available resources. 
  • Ensure effective and efficient financing of the predominant renewable energy conservation schemes and projects. 
  • To increase the overall share of IREDA through innovative financing, thereby leading to an increased stake in the energy sector. 
  • To improve the entire chain of processes undertaken, systems, and available resources to promote the existing efficiency of the services provided. 
  • Enhance customer satisfaction to remain relevant in the existing competition. 

Fields of Interests 

Here are some of the areas of interest of IREDA: 

  • To extend full support for the green power capacity.
  • To arrange adequate financing for successfully setting up various solar manufacturing units. 
  • To work for the promotion and funding of renewable energy schemes, plans, and projects. 

Projects and Relevance of IREDA

Currently, the agency is working towards establishing an Alternate Investment Fund (AIF), which aims to attract the attention of prominent institutional investors like insurance, pension, and Environmental, Social, and Governance (ESG) funds. 

In addition to the projects mentioned above, IREDA will be provided significant assistance from AIF to finance the new and emerging projects. The Cabinet Committee on Economic Affairs (CCEA) gave the green flag to a considerable proposal of an Rs.1,500 crores equity infusion in the state-owned IREDA. It will help enhance the overall net worth of a specialised non-banking finance agency, making the prospects of additional financing a lot easier. This is one of the predominant reasons that brought the agency into the spotlight and helped it gain significant attention in the mainstream. 

FAQs on IREDA Full Form

Here are some common FAQs on IREDA:

Q.1) What is the full form of IREDA, and when did it come into existence?
A.1) The IREDA full form is Indian Renewable Energy Development Agency Ltd and was established in 1987.

Q.2) Where is the headquarters of IREDA, and who is the current MD & CEO of the agency?
A.2) The headquarters of IREDA is in New Delhi, and Mr.Mr. Pradip Kumar Das is the current MD & CEO of the organisation.  

Q.3) What are the main functions of IREDA?
A.3) One of the many essential functions of IREDA is financing renewable energy projects for electricity generation.

Q.4) What is the motto of IREDA, and when was it conferred with the title of ‘Mini-Ratna’?
A.4) ‘Energy For Ever’ is the motto of IREDA, and it received the ‘Mini-Ratna’ status in 2015 by the Ministry of New and Renewable Energy (MNRE). 

We hope this article on IREDA full form proves helpful to you. Do let us know if you have any questions on the same through the comments section below, and we will get back to you at the earliest. For more such informative articles, keep visiting Embibe.

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