Lok Sabha Question No. 1972 (UNSTARRED), answered on 2015-12-10
Subject: Loans by IREDA
Ministry: NEW AND RENEWABLE ENERGY
Asked by: J.C. DIVAKAR REDDY, RAYAPATI SAMBASIVA RAO, LALLU SINGH

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED  QUESTION NO. 1972

TO BE ANSWERED ON 10.12.2015

## LOANS BY IREDA

## 1972.  SHRI J.C. DIVAKAR REDDY: SHRI RAYAPATI SAMBASIVA RAO: SHRI LALLU SINGH:

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

(a) the  major  functions  of  Indian  Renewable  Energy  Development  Agency  (IREDA)  and whether it has fulfilled the objective for which it was set up;

(b) if so, the details thereof, if not, the steps taken by the Government to make IREDA a better performing agency;

(c) the details of funds allocated to IREDA by the Government during the last three years and the achievement/outcome thereof;

(d) the details of projects funded/financed by IREDA during the last three years and the power being generated/proposed to be generated through them, State/UT-wise; and

(e) whether  IREDA  also  gives  assurance  to  the  developers  whose  projects  are  financed  by them regarding procurement of the power generated by them, if so, the details thereof?

## ANSWER

## THE MINISTER  OF  STATE  FOR POWER, COAL  & NEW  AND RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a)&(b): The Indian Renewable Energy Development Agency Limited (IREDA) was set up in 1987 as a dedicated financial institution to promote, develop and extend financial support to Renewable Energy (RE) and Energy efficiency/conservation projects. During its 28 years of existence,  IREDA  has  played  a  seminal  role  in  the  commercialization  of  Renewable  Energy technologies in the country by providing innovative and customized financial services across the entire value chain, from manufacturing facilities to power generation to evacuation projects and by showcasing success stories - encouraging other lenders/banks to support the sector. Till the end of  financial  year  2014-15,  IREDA  has  disbursed  Rs.16,939.32  crore  resulting  in  capacity addition of around 6000 MW of RE capacity.

IREDA  has  been  consistently  paying  dividend  and  is  a  profit  making  company. Performance of IREDA and MOU rating for the last four years is as under:

| Financial   | Sanction   | -2- (Rs. in crore.) Disbursement   | MOURating   |
|-------------|------------|------------------------------------|-------------|
| Year        |            |                                    |             |
| 2010-11     | 3268.93    | 1224.17                            | Excellent   |
| 2011-12     | 3401.12    | 1855.04                            | Very Good   |
| 2012-13     | 3698.36    | 2125.50                            | Very Good   |
| 2013-14     | 3867.40    | 2350.31                            | Excellent   |

- (c): The Government of India has provided the following equity contribution to IREDA during the last three years:

2012-13: Rs.60 crore

2013-14: Rs.45 crore

2014-15: Rs.40 crore

The fund  provided  by  the  Government  has  successfully  been  utilized  by  IREDA  in  the lending operation and the company has been making profit and paying dividend consistently. The details are given below:

| Financial Year   |   Net Profit |   (Rs in crore) Dividend |
|------------------|--------------|--------------------------|
| 2012-13          |       202.65 |                     27.5 |
| 2013-14          |       240.51 |                     35   |
| 2014-15          |       271.9  |                     54.4 |

- (d): A State/UT -wise list of projects financed by IREDA during last three years is enclosed as Annexure. The power proposed to be generated from these projects are as below:-
- (e): IREDA does not give any assurance to the developers whose projects are financed by IREDA regarding procurement of the power generated by them.

| Sector                | Sanctioned Capacity (MW)   | Expected Generation (MUs)   | PLF Assumption (%)   |
|-----------------------|----------------------------|-----------------------------|----------------------|
| Wind                  | 2788                       | 6106                        | 25                   |
| Solar                 | 536                        | 845                         | 19                   |
| Cogeneration& Biomass | 443                        | 1941                        | 50                   |
| Hydro (excluding      | 259                        | 1251                        | 55                   |
| large hydro> 25MW)    |                            |                             |                      |

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