India’s push towards renewable energy has been gaining momentum in recent years, and the Indian Renewable Energy Development Agency (IREDA) is at the forefront of this transition. With its latest plan to finance renewable energy projects in foreign currency, IREDA is taking a significant step towards establishing India as a leader in renewable energy.
Establishing an Office in Gujarat’s GIFT City
To achieve this goal, IREDA is establishing an office in Gujarat’s GIFT City, which will be classified as an overseas office. This classification will allow IREDA to avoid foreign exchange hedging costs and streamline the financing process for renewable energy projects.
According to Pradip Kumar Das, Chairman & Managing Director (CMD) of IREDA, the establishment of the new office in GIFT City is a significant step towards expanding IREDA’s operations and making it easier for foreign investors to invest in renewable energy projects in India.
Green Taxonomy to Raise Funds for Green Energy Projects
The success of IREDA’s ambitious plans to finance renewable energy projects in foreign currency is heavily reliant on raising funds through Green Taxonomy. Chairman Das emphasized the importance of the Green Taxonomy, which is designed to raise approximately Rs.25 lakh crores fund for green energy projects by 2030.
Insurance and Superannuation Funds to Invest in Green Bonds
He also proposed that insurance and superannuation funds should be mandated to invest 2% of their assets under management in Green Bonds to finance green energy projects. This move would not only help raise funds for renewable energy projects but also encourage more private investment in the sector.
Concentration on Providing Handholding Approach
IREDA has been experiencing significant growth over the past three years, and Chairman Das attributes this success to the organization’s focus on providing a handholding approach to its stakeholders. IREDA has been working hard to provide every possible support to its stakeholders while complying with best Corporate Governance Standards.
Highest Standards of Corporate Governance
IREDA has been working to ensure the highest standards of Corporate Governance by implementing the 3Cs principles of Conviction, Commitment, and Clarity. This emphasis on Corporate Governance has been critical to IREDA’s success and has helped the organization establish itself as the top choice for renewable energy funding among major multilateral and bilateral agencies such as the World Bank, KFW, JICA, and ADB.
IREDA’s ambitious plans to finance renewable energy projects in foreign currency are a significant step towards India’s goal of achieving 450 GW of renewable energy capacity by 2030. With the establishment of an overseas office in Gujarat’s GIFT City and a focus on raising funds through Green Taxonomy, IREDA is leading the way towards making renewable energy accessible and affordable to all.
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