New Delhi : The Reserve Bank of India (RBI) on Sunday granted an 'Infrastructure Finance Company (IFC)' status to Indian Renewable Energy Development Agency (IREDA). It was earlier classified as an 'Investment and Credit Company (ICC)', as per an official release.
With the IFC status, IREDA can now take higher exposure in RE financing. The IFC status will also help the company access a wider investor base for fund mobilisation, resulting in competitive rates for fundraising.
Further, according to the official release, the recognition of IREDA as an IFC will increase investors' confidence, enhance brand value, and generate a positive outlook in the market.
The grant of IFC status is a recognition of IREDA's 36 years of infrastructure financing and development with focused development of Renewable Energy, the release stated further, adding that with the IFC status, IREDA will keep contributing towards the government's target of 500 GW installed capacity of non-fossil fuels by 2030.
Pradip Kumar Das, chairman and managing director of IREDA, said, "The IFC status is a significant milestone for IREDA and will enable us to maintain our leading position as a financier of RE space. IREDA will continue to play a motherly role in the development of the RE sector."
IREDA has been promoting, developing and financing new and renewable sources of energy with the motto 'Energy for Ever' since 1987.
It finances all RE technologies and value chains such as solar, wind, hydro, bio-energy, waste to energy, energy efficiency, e-mobility, battery storage, biofuel and new and emerging technologies, stated the release.