The Government of India has set a revenue target of ₹33.61 billion (~$414 million) for the financial year (FY) 2022-23 for Indian Renewable Energy Development Agency (IREDA), 18% higher than the previous year’s revenue from operations.

The target was set under the memorandum of understanding signed between the IREDA and the Ministry of New and Renewable Energy (MNRE).

The government has set key performance parameters such as return on net worth, return on capital employed, non-performing assets (NPAs) to total loans, asset turnover ratio, and earnings per share.

The MoUs between IREDA and the MNRE are signed every financial year to set a revenue target for the company measured using specified parameters.

According to the company, IREDA secured 96.54 marks for the MoU of FY 2021-22.

The public limited government company established as a Non-Banking Financial Institution, posted a profit of ₹1.84 billion (~$22.66 million) in the second quarter of FY 2023, an increase of 67% compared to ₹1.10 billion (~$13.55 million) during the same period last year.

IREDA’s net NPAs also reduced from 4.87% to 2.72% during the quarter compared to the corresponding period during FY 2021-22.

The financial institution spearheads the government’s initiative to expand renewable energy generation and component manufacturing by extending financing options for such projects.

The company has so far financed more than 3,068 renewable energy projects loan accounts with cumulative loan sanctions and disbursements of approximately ₹1.42 trillion (~$17.50 billion) and ₹900.37 billion (~$11.09 billion), respectively. It has supported the addition of 19.5 GW of renewable energy capacity through its financing.

In August last year, IREDA signed an MoU with the Bank of India for co-lending, co-origination, and loan syndication for renewable energy projects, including small hydro and ethanol projects.

Recently, IREDA also sanctioned a ₹44.45 billion (~$547.42 million) loan to SJVN Green Energy, a subsidiary of SJVN, to develop a 1 GW solar project in Bikaner, Rajasthan.