Infrastructure Finance Company
Context:-
The Reserve Bank of India (RBI) has granted an ‘Infrastructure Finance Company (IFC)’ status to Indian Renewable Energy Development Agency (IREDA) on 13 March.
An overview of the news :
- It was earlier classified as
‘Investment and Credit Company (ICC)’.
- With IFC status, IREDA will be able to take higher exposure in renewable energy financing.
- The IFC status will help the company access a wider investor base to raise funds, resulting in competitive rates for raising funds.
- This will boost investor confidence, enhance brand value and create a positive outlook in the market.
- The awarding of IFC status is recognition of IREDA’s 36 years of infrastructure financing and renewable energy development.
- With IFC status, IREDA will contribute to the government’s target of 500 GW of non-fossil fuel installed capacity by 2030.
Benefits of the IFC status:
- Now IREDA will be able to take higher exposure to RE (Renewable Energy) financing
- It will be able to access a wider investor base for fund mobilisation, resulting in competitive rates for fundraising.
- It will increase the investors’ confidence, enhance the brand value, and generate a positive outlook in the market.
Significance:
The grant of IFC status is a recognition of IREDA’s 36 years of infrastructure financing and development with focused development of Renewable Energy.
Indian Renewable Energy Development Agency (IREDA)
- It was incorporated as a Public Limited Company in the year 1987 as a ‘Non-Banking Financial Institution’.
- It is a Miniratna (Category 1) type company functioning under the administrative control of ‘Ministry of New and Renewable Energy, Government of India.
- Its function is to encourage projects related to new and renewable energy sources and to provide them financial assistance for their development.
- It has been notified as a ‘Public Financial Institution‘ under section 4’A’ of the ‘Companies Act, 1956’.
- Chairman and Managing Director – Pradip Kumar Das
