Indian Renewable Energy Development Agency’s (IREDA) net NPAs declined to 2.72 per cent in the July-September quarter of the current financial year from from 4.87 per cent a year ago.

IREDA on Friday signed a Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE) setting the annual performance target for FY23.

MNRE Secretary Bhupinder Singh Bhalla commended IREDA for reducing the net NPA from 5.61 per cent to 2.72 per cent. He advised the non-baking financial company (NBFC) to devise a suitable mechanism for funding Rooftop Solar, PM-KUSUM, and other RE technologies.

As part of the government’s goal to have 500 gigawatts (GW) of non-fossil fuel capacity by 2030, he also urged IREDA to develop an action plan for financing RE projects in the country, the MNRE said in a statement. The challenges being faced by IREDA to meet the huge demand for funding for the RE sector were also discussed, for which the MNRE Secretary has assured full support and guidance, it added.

The company has financed more than 3,068 renewable energy (RE) projects loan accounts with cumulative loan sanction and disbursement to the tune of ₹1,41,622 crore and ₹90,037 crore, respectively, and has supported RE capacity addition of 19,502 megawatts (MW) in the country.

PBT

The state-run company posted a Profit Before Tax (PBT) of ₹276.31 crore, which is 76.15 per cent higher compared to ₹156.86 crore in the Q2 FY22. Its net profit grew 67.14 per cent y-o-y at ₹184.30 crore. At the end of Q2 FY23, its loan book stood at ₹33,783.36 crore as against ₹28,856.48 crore in Q2 FY22, while sanctioned loans stood at ₹11,226.49 crore as against ₹5,925.12 crore in the year-ago period.

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