Lok Sabha Question No. 2970 (UNSTARRED), answered on 2025-08-06
Subject: Criteria for Loan by IREDA
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Rao Rajendra Singh

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 2970

ANSWERED ON 06.08.2025

## CRITERIA FOR LOAN BY IREDA

2970. SHRI RAO RAJENDRA SINGH

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) the criteria adopted by the Indian Renewable Energy Development Agency (IREDA) to grant loans to private players;
- ( b) the amount of loans assigned to private players by the agency during the last five years;
- (c) the list of Non Performing Assets (NPAs) that have been accumulated during such a devolution during the last five years;
- (d) whether any steps have been taken by the Non-Banking Finance Company (NBFC) to ensure
- the quality of loans devolved to Public and Private Sector companies; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK)

- (a) Indian Renewable Energy Development Agency (IREDA) has comprehensive 'Financing Norms' which stipulates the detailed requirement / criteria, terms and conditions for availing loans from IREDA for various sectors under different schemes. The 'Financing Norms' are available on IREDA's website (www.ireda.in)  for  reference  of  developers  /  borrowers.    The  key  criteria  inter-alia  include  Project Viability,  Promoter  Credentials,  Clearances  and  approvals,  Off-take  Agreement,  Debt-Equity  Ratio, Security and Collateral, Assessment through Credit Risk & Rating System (CRRS) and Compliance with IREDA Guidelines.

IREDA also provide certain concessions / rebates to entrepreneurs belonging to SC/ST, Women, ExServicemen  and  Handicapped  categories,  entrepreneurs  setting  up  Projects  in  North-eastern  States, Sikkim, Islands, Estuaries, and Union Territories of Jammu & Kashmir and Ladakh, rebates in interest rate after commissioning based on independent external rating agencies, special concessions for MSMEs etc.

- (b) The details of loan sanctions and disbursements to private sector borrowers during the last 5 financial years are given below:

(Amount in Crores)

| Parameters         | 2020-21   | 2021-22   | 2022-23   | 2023-24   | 2024-25   |
|--------------------|-----------|-----------|-----------|-----------|-----------|
| Loan Sanctions     | 6,759.30  | 12,201.45 | 24,391.89 | 29,773.28 | 32,802.17 |
| Loan Disbursements | 4,588.35  | 7,817.04  | 15,097.86 | 18,614.63 | 18,521.87 |

(c) The list of Non-Performing Assets (NPAs) accounts during the last five financial years which are in the books of IREDA as on 31.3.2025 is given in Annexure-I.

(d)&(e)  IREDA has robust credit appraisal process, policies and procedures to appraise and extend financial assistance to various renewable energy projects. During the appraisal process, key parameters on technical and financial viz. sponsor / promoter contribution, borrower creditworthiness and history, technological  specifications  /  performance  of  the  project,  offtake  agreement  and  other  statutory compliances are assessed. Based on data available for various parameters such as technology/ capacity utilization, Engineering Procurement & Construction (EPC) performance etc. are also factored in during appraisal. IREDA also obtains third party assessment on raw material, if any, projects cost, working capital requirements, finished product and by products etc. Further, IREDA also carries out the internal rating and Know Your Customer (KYC), risk assessment for the projects.

Further, IREDA monitors the loans throughout the project life cycle. During the implementation period, IREDA appoints  Lender's  Independent  Engineer  (LIE),  Lender's  Financial  Advisor  (LFA)  for  the projects who carry out their independent due diligence. IREDA also carries out site inspections to assess the project progress. The post-disbursement monitoring mechanism involves regular review of the trust and retention accounts and debt service reserve accounts, plant load factor of projects, validity/coverage o f insurance for projects, compliance with security conditions etc. apart from assessment of guarantors' strength on an annual basis.   Periodic meetings with borrowers are being conducted to discuss the projects specific issues along with suggestions / feedback from borrowers, if any.

*****

## ANNEXURE -I REFERRED TO IN REPLY TO PART (C) OF LOK SABHA UNSTARRED QUESTION NO. 2970 FOR 06.08.2025

Non-Performing Assets (NPAs) accounts during the last five financial years (01.04.2020 to 31.03.2025)

| S. No                       | Name of the Borrower                              | Principal Outstanding as on 31.3.2025 (Amount: Rs Crore)   |
|-----------------------------|---------------------------------------------------|------------------------------------------------------------|
| FY 2024-25                  | FY 2024-25                                        | FY 2024-25                                                 |
| 1                           | Broadcast Engineering Consultants India Limited   | 51.11                                                      |
| 2                           | Junagadh Power Projects Pvt. Ltd.                 | 21.45                                                      |
| 3                           | Amreli Power Projects Private Limited             | 27.30                                                      |
| 4                           | Nawanshahr Power Private Limited                  | 36.58                                                      |
| 5                           | Gandhinagar Waste Fuels Limited                   | 8.12                                                       |
| 6                           | Gandhinagar Waste Fuels Limited                   | 11.39                                                      |
| 7                           | Goodwatts WTE Ahmedabad Private Limited           | 77.58                                                      |
| 8                           | Goodwatts WTE Rajkot Private Limited              | 105.00                                                     |
| 9                           | Goodwatts WTE Vadodara Private Limited            | 97.53                                                      |
| 10                          | Goodwatts WTE Jamnagar Private Limited            | 56.09                                                      |
| 11                          | Novus Green Energy System Limited                 | 31.39                                                      |
| 12                          | Enlighten Biofuels &Biofertilizer Private Limited | 10.10                                                      |
| 13                          | Enlighten Biofuels &Biofertilizer Private Limited | 12.22                                                      |
| 14                          | Hetero Renewable Energy Pvt Ltd                   | 7.80                                                       |
| 15                          | Abellon Clean Energy Limited                      | 150.00                                                     |
| Sub-Total 703.66 FY 2023-24 | Sub-Total 703.66 FY 2023-24                       | Sub-Total 703.66 FY 2023-24                                |
| Nil                         | Nil                                               | Nil                                                        |
| FY 2022-23                  | FY 2022-23                                        | FY 2022-23                                                 |
| 16                          | Smaru Tech LLP                                    | 6.78                                                       |
| 17                          | Balaji Energy Private Limited                     | 0.10                                                       |
| 18                          | Balaji Energy Private Limited                     | 0.23                                                       |
|                             | Sub-Total                                         | 7.11                                                       |
| FY 2021-22                  | FY 2021-22                                        | FY 2021-22                                                 |
| 19                          | Siri Ram Syal Hydro Power Private Limited         | 4.87                                                       |
|                             | Sub-Total                                         | 4.87                                                       |
| FY 2020-21                  | FY 2020-21                                        | FY 2020-21                                                 |
| 20                          | Shree Basaveshwar Sugars Ltd.                     | 82.47                                                      |
| 21                          | Marsol Solar Private Limited                      | 0.50                                                       |
|                             | Sub-Total                                         | 82.97                                                      |
| GRAND TOTAL                 | GRAND TOTAL                                       | 798.61                                                     |