Indian Renewable Energy Development Agency Ltd (IREDA) witnessed a 26 per cent year-on-year increase in its outstanding loan book, as of June 30, 2025.
IREDA’s outstanding loan book surged to Rs.79,941 crore as of June 30, 2025 as against Rs.63207 crore as of the same date in 2024.
A release from IREDA noted that significant contributions were witnessed from solar, wind, as well as emerging technologies like green hydrogen, smart meters, and e-mobility.
Operational excellence
Commenting on the continued growth metrics, Pradip Kumar Das, Chairman & Managing Director, IREDA, said, “Operational excellence and responsible financing remain at the heart of our business strategy. We are committed to creating long-term stakeholder value through strong corporate governance, financial discipline, and robust support to India’s renewable energy goals.”
Exposure to power T&D
Though IREDA does not actively lend to the power transmission & distribution (T&D) sector, it does a sizeable exposure to power T&D. According to an investor presentation, power transmission together with the “emerging technology” sector had an outstanding loan book of Rs.2,229 crore, as of June 30, 2025, up 48.4 per cent from Rs.1,502 crore as of June 30, 2024. The “emerging technology” sector includes smart meters, green hydrogen and energy access projects, among others.
Addressing the media at a press conference in Mumbai on July 21, 2025, Pradip Kumar Das clarified that IREDA’s exposure to power transmission is limited to evacuation infrastructure associated with renewable energy projects only. “Our core competence is renewable energy. There is no need for IREDA to digress from its core competence because so much opportunity exists in the RE space. At times, we can go into the forward and backward value chain so that the overall ecosystem can be further strengthened,” Das said.
IREDA has also begun lending to the “smart meter” space, Das observed, adding that such lending would be largely to the advance metering infrastructure service providers (AMISP) under the Revamped Distribution Sector Scheme (RDSS), rather than smart meter manufacturers.
Committed to RE
India’s recent milestone of achieving 50 per cent non-fossil fuel-based power capacity, five years ahead of its 2030 target underscores the growing opportunities in the renewable energy sector. IREDA has been instrumental in this progress and continues to reaffirm its leadership in driving the country’s clean energy transition towards the 500 GW target.
Inclusion under Section 54EC
In a major policy boost, the Central Board of Direct Taxes (CBDT) under the Ministry of Finance has notified IREDA bonds as ‘long-term specified assets’ under Section 54EC of the Income-tax Act, 1961, effective July 9, 2025. This enables investors to claim capital gains tax exemption while supporting India’s green transition. The move is also expected to reduce IREDA’s cost of capital and encourage wider investor participation.
Also read: IREDA sanctions Rs.2,128-crore loan to GMR Group entities for smart metering projects
Featured photograph shows Pradip Kumar Das, Chairman & Managing Director, IREDA (second from left) along with other senior IREDA officials at a press conference in Mumbai on July 21, 2025.