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Indian Renewable Energy Development Agency Ltd. (IREDA) announced exceptionally strong Q3 FY2024-25 results, showcasing a remarkable 129 percent year-on-year (YoY) growth in sanctions, reaching a total of Rs 31,087 crore. This significant increase underscores IREDA's pivotal role in driving India's renewable energy sector. Simultaneously, disbursements experienced a substantial 41 percent surge, totaling Rs 7,236 crore. This robust performance reflects increased investor confidence and the growing demand for renewable energy solutions within the country. The outstanding loan book also experienced healthy expansion, growing by 36 percent to reach Rs 69,000 crore, a clear indicator of IREDA's expanding portfolio and its commitment to facilitating large-scale renewable energy projects.
The impressive financial performance is complemented by IREDA's strategic initiatives to expand its market presence and diversify its offerings. The establishment of a wholly-owned subsidiary at GIFT City, focused on green hydrogen and renewable energy equipment manufacturing through foreign currency financing, represents a significant step towards bolstering India's green energy infrastructure. This strategic move opens doors for collaboration with international investors and technology providers, potentially accelerating the adoption of cutting-edge green technologies within the country. Furthermore, the in-principle approval for a retail subsidiary highlights IREDA's commitment to reaching a broader market segment.
This retail subsidiary will play a crucial role in promoting rooftop solar energy under the PM-Suryaghar and PM-KUSUM schemes. By directly engaging with consumers, IREDA aims to simplify access to renewable energy solutions and accelerate the transition to cleaner energy sources. The expansion into emerging B2C segments, such as electric vehicles, energy storage, and green technologies, demonstrates IREDA's forward-thinking approach and its dedication to fostering a comprehensive renewable energy ecosystem. The company's focus on providing financial support for diverse projects, including green ammonia, pumped storage hydropower, and decentralized solar rooftop generation, showcases its ability to address the varied needs of the renewable energy sector.
IREDA's achievements extend beyond its financial performance. The company has secured several significant milestones in the past year, including achieving Navratna status, a testament to its operational efficiency and financial stability. A BBB-(Stable) rating from S&P Global, equivalent to a sovereign rating, further solidifies IREDA's strong creditworthiness and its ability to attract significant investments. Maintaining domestic AAA ratings reinforces the company's financial strength and reliability. The record-breaking publication of FY23-24 financial results in just 19 days and the hosting of India's earliest AGM on June 24, 2024, highlights IREDA's commitment to transparency and efficiency.
IREDA's success is not only reflected in its financial metrics and strategic initiatives but also in its recognition as one of India's top five wealth creators. This prestigious second-place ranking, achieved by a leading business newspaper, is particularly noteworthy as IREDA is the only public sector enterprise on this list. This recognition underscores the significant impact of the company's contributions to India's economic growth and its role in shaping the country's future energy landscape. The company’s Chairman and Managing Director, Pradip Kumar Das, attributed the success to the dedication and commitment of the employees and their families, highlighting the importance of teamwork and collaboration in achieving these remarkable results.
Looking ahead, IREDA aims to continue driving innovation and excellence in India's green energy mission. The company's strategic vision, coupled with its strong financial performance and recognition of its contributions to India's green energy transition, positions it as a key player in shaping India's sustainable energy future. The continued focus on expansion, diversification, and customer engagement suggests IREDA is poised for even greater achievements in the years to come. The consistent upward trajectory of its financial performance and strategic initiatives signals a positive outlook for the company and its significant role in India’s renewable energy sector.
Source: IREDA reports 129 pc YoY growth in sanctions, 41 pc surge in disbursements for Q3 2024-25