Dear Stakeholders,
I am pleased to present the 37th Annual Report
of your Company celebrating yet another year marked by robust financial success and
enduring commitment to advancing financing across the spectrum of renewable energy &
green technologies.
Before we reflect on our achievements within India's
vibrant green finance market, it is essential to consider the broader global context to
understand how emerging trends are shaping new opportunities and challenges for our
industry.
GLOBAL GREEN FINANCING SCENARIO
In 2023, global investment in energy transition reached an
unprecedented high of $1.77 Trillion marking a robust 17% increase from the previous year
(Bloomberg). This substantial growth demonstrates the world's continued commitment to
advancing clean energy solutions. Notably, electrified transport emerged as the dominant
sector, attracting investments of $634 Billion which were up 36% from the previous year,
and overtaking renewable energy, which secured $623 Billion, reflecting an 8% growth. This
shift highlights the dynamic nature of the market and the increasing focus on diversifying
the sources of clean energy.
According to the International Energy Agency (IEA), ~510 GW
of
renewable capacity was expected to be added in 2023,
bringing the total global renewable energy capacity to ~4,140 GW by year-end. Solar energy
leads the charge accounting for ~1,552 GW, followed by Hydro power at ~1,411 GW, Wind
energy at ~1,007 GW and Bioenergy at ~170 GW.
This increase in renewable installed capacity is supported
by declining costs for Solar and Wind energy. The IEA reported that Onshore Wind and Solar
PV are now more cost-effective than both existing and new Fossil-fuel based power plants.
Approximately 96% of new utility-scale Solar PV and Onshore Wind capacity had lower
generation costs than new Coal and Natural Gas plants, and about 75% were cheaper than
existing Fossil-fuel facilities.
Leading the G20 Presidency in 2023, India spearheaded
significant global commitments to promote sustainable development and combat climate
change underscoring its commitment to the Summit declaration of "One Earth, One
Family, One Future".
The 28th Conference of the Parties (COP28) to
the UN Framework Convention on Climate Change, held in Abu Dhabi from 30th
November 2023 to 13th December 2023, introduced the first 'global stocktake'
to monitor progress towards limiting global warming to 1.5?C by reducing global
greenhouse emissions by 43% (from 2019 levels) by 2030.
Honorable Prime Minister of India participated in the COP28
Presidency's Session on 'Transforming Climate Finance' underscoring the importance
of green financing and exhorting the assembly to deliver on 4 key aspects:
• Progress in New Collective Quantified Goal on
Climate Finance
• Replenishment of Green Climate Fund & Adaptation
Fund
• Affordable Finance to be made available by MDBs for
Climate Action
• Developed countries must eliminate their carbon
footprint before 2050
At COP 28, your Company also advanced its commitment to
supporting Micro, Small & Medium Enterprises (MSMEs) in the renewable energy sector
during a session on "Pioneering Sustainability in MSMEs: Envisioning Global Growth
and Local Impact"
Energy transition investments need to average ~$ 4.8
Trillion per annum till 2030 compared to ~$ 1.77 Trillion investment recorded in 2023
(Bloomberg). In this scenario, climate finance institutions are essential for directing
global funds effectively into decarbonization projects to address the growing demands of
the sector. Your Company remains committed to its pivotal role in the renewable energy
sector and strives to fulfil these investment objectives going forward.
INDIA GREEN FINANCING SCENARIO
India stands 4th globally in terms of Renewable
Energy installed capacity, 4th in terms of installed Wind power capacity and 5th
in terms of installed Solar power capacity as per International Renewable Energy Agency
(IRENA) 2023 global ranking.
With its 500 GW non-fossil fuel installed capacity target
for 2030 & Net Zero target for 2070, India has embarked on one of the most extensive
renewable energy expansions in the world. Significant milestones have already been
achieved towards India's first Nationally Determined Contribution, namely:
• India has successfully reduced its emissions
intensity vis-a-vis its GDP by 33% between 2005 and 2019, 11 years ahead of the 2030
target
• India also achieved 40% of installed electricity
capacity through non-fossil fuel sources, 9 years ahead of the target for 2030
In response to its progress, India has updated its Nationally
Determined Contribution targets as
• Reducing emissions intensity of its GDP by 45% (from
2005 level) by 2030
• Achieving ~50% cumulative installed electricity
capacity from non-fossil energy sources by 2030
In FY24, ~70% of the ~26 GW capacity addition came from
renewable sources, including ~15 GW Solar capacity addition
and ~3.3 GW Wind capacity addition. As of 31st
March 2024, India's total installed electricity capacity stands at ~442 GW (Thermal: ~243
GW, Nuclear: ~8 GW & Renewables: ~191 GW). Therefore, Renewable Energy contributes to
~43% of installed capacity (including Large Hydropower contribution at ~11%).
Over the last 3 years, India's renewable energy capacity
(including Large Hydropower) has increased by 16-17 GW on average annually.
However, to facilitate year-on-year capacity addition, the
Government of India is targeting 50 GW annual bidding for Solar & Wind projects over
2023 to 2028. In FY24, a record ~41 GW of renewable energy projects were awarded which is
set to triple the pace of annual renewable capacity addition.
FY24 also saw an acceleration in bidding activity across
other renewable energy sectors :
• Green Hydrogen production: ~412,000 MTPA projects
were awarded by Government of India with commissioning targeted within 30 months of Letter
of Award Government of India.
• Electrolyzer manufacturing: ~1,500 MW manufacturing
capacity was awarded under Strategic Interventions for Green Hydrogen Transition Scheme
(Tranche-I)
• Solar PV manufacturing: Letters of Award was
issued for 39,600 MW of fully / partially integrated Solar PV module manufacturing units
under the SolarPLIScheme (Tranche II)
• Battery manufacturing: Request for Proposal was
launched for 10 GWh manufacturing capacity under the Advanced Cell Chemistries PLI
Scheme which was subsequently awarded in April 2024
Thus, India's renewable energy sector is showing
encouraging signs of a strong resurgence. Availability of sufficient quantum of financing
at competitive rates will be critical for the actualization of this market as the cost of
finance significantly affects the viability of renewable energy projects.
As the Government of India's dedicated green financing
entity as well as India's largest pure-play green financing institution, your Company is
committed to supporting Government of India initiatives and partnerships that propel the
adoption of renewable technologies ensuring that India not only meets but exceeds its
ambitious renewable energy goals.
HIGHLIGHTS OF FINANCIAL & OPERATIONAL PERFORMANCE
Robust business growth and profitability
In FY24, your Company achieved the highest ever annual loan
book, sanction, disbursement, profit, and net worth. A snapshot of our performance can be
seen below:
• Gross loan book: '59,698.11 Crore in FY24 as against
'47,075.52 Crore in FY23 (up by 26.81%)
• Loan Sanction: '37,353.68 Crore in FY24 as against
'32,586.60 Crore in FY23 (up by 14.63%)
• Loan Disbursement: '25,089.04 Crore in FY24 as
against '21,639.21 Crore in FY23 (up by 15.94%)
• Profit Before Tax: '1,685.24 Crore in FY24 as
against '1,139.25 Crore in FY23 (up by 47.93%)
• Profit After Tax: '1,252.23 Crore in FY24 as against
'864.63 Crore in FY23 (up by 44.83%)
• Net worth: ' 8,559.43 Crore in FY24 as against
'5,935.17 Crore in FY23 (up by 44.22%)
Key performance highlights
In addition to robust financial performance, your Company
delivered several other notable achievements in FY24; some key highlights are mentioned
below:
• Initial Public Offering launched at38.59x
subscription
Your Company completed its Initial Public Offering (IPO)
listing on the BSE and the NSE on 29th November 2023. Your Company raised
'2,150.22 Crore through a mix of fresh issues and an offer for sale by the Government of
India, with the Government retaining a 75% stake post-IPO.
Your Company's IPO received an overwhelming response from
investors across all categories with the issue over-subscribed by a staggering 38.59
times.excluding anchor investers. The portion for Qualified Institutional Bidders (QIBs)
witnessed a significant 105.18 times subscription, while the portion reserved for
non-institutional investors saw 22.98 times bidding.
• Fastest publication of Audited Annual Financial
Results in the Indian Banking & NBFC sector
Your Company has set a new benchmark by publishing its
Annual Audited Financial Results within just 19 days, which is the fastest publication of
Audited Results in the Banking and NBFC space in India, significantly ahead of SEBI's
60-day deadline.
This landmark achievement in financial reporting is just
one of many initiatives aimed at fostering a culture of excellence in corporate governance
and accountability. In addition, this achievement reflects your Company's efficient
internal processes and advanced digital data management capabilities.
Your Company remains dedicated to maintaining the highest
standards of financial integrity and operational efficiency alongside its commitment to
exemplary business performance.
• Opening of office in GIFT City, Gandhinagar for
Foreign currency financing
Post ending of FY24, your Company has opened an office in
GIFT City which will specialize in providing debt options
denominated in foreign currencies. This facilitates natural hedging and significantly
reduces financing cost for Green Hydrogen & its derivatives as well as Renewable
Energy Manufacturing projects. This strategic initiative will play a pivotal role in
advancing the nation's progress toward an environment friendly and 'atmanirbhar'
future.
• Opening of paperless Business Centre at NBCC
Office Complex, Delhi
Your Company inaugurated its state-of-the-art Business
Centre at NBCC Office Complex, East Kidwai Nagar, New Delhi on 24th June
2023. The new office incorporates digital technologies to eliminate the use of paper,
driving sustainability as well as transparent and efficient digital workflows.
Further, the new space has been designed to foster employee
productivity, collaboration, and well-being with dedicated spaces and amenities for Yoga,
Meditation, and Fitness enabling employees to prioritize their physical and mental
well-being.
• Credit Ratings
The domestic debt instruments of your Company are rated
'AAA' stable by ICRA Ltd. India Ratings and Research Private Limited, and Brickwork
Ratings India Private Limited and "AA+" "Positive" by CareEdge
Ratings. Further, term loan & short term loan from banks & financial institutions
have been assigned "AAA" stable rating by Acute Rating & Research Ltd.,
India Ratings & Research Private Limited and Brickwork Ratings India Private Ltd. GOI
Fully Serviced Bonds are rated "AAA" "Stable" from India Ratings &
Research Private Limited, ICRA Limited and CareEdge Ratings.
• Upgradation to Schedule 'A' CPSE in September
2023 followed by 'Navratna' status awarded by the Department of Public Enterprises in
April 2024.
Your Company was awarded the prestigious Navratna
status in April 2024 in recognition of continued excellence in business performance and
governance. This award confers significant autonomy to your Company in shaping its
business targets and ambition which in turn will translate into responsive support to the
renewable energy sector. Further, your Company aims to become a Maharatna CPSE by FY30
subject to Government guidelines and applicable approvals.
Healthy asset quality
In addition to business expansion, your Company has
prioritized enhancement of its asset quality. A rigorous recovery and monitoring framework
has been established, which includes monthly internal reviews and quarterly discussions
with borrowers. Furthermore, your Company has improved its recovery effectiveness by
revising its asset sale policy under the SARFAESI Act, 2002.
With a focused approach, the reduction of '102.50 Crore in
Gross NPA has been realized during FY24 through a net
reduction of 3 NPA accounts thereby reducing the total number of NPA loan accounts to 61.
Further, '212.70 Crore has been recovered from NPA accounts which includes '90.68 Crore
from Principal recovery and '122.02 Crore from Interest Income recovery.
This has resulted in healthy improvement in NPA ratios at
the close of FY24 as can be seen below:
• Gross NPA: 2.36 % (vs. 3.21% in FY23)
• Net NPA: 0.99% (vs. 1.66% in FY23)
'Excellent' Performance expected on MoU with MNRE
Your Company has signed a Memorandum of Understanding (MoU)
with the Ministry of New and Renewable Energy (MNRE) setting financial and operational
targets for FY24.
Your Company is expecting an 'Excellent' rating for
FY24 basis its performance (subject to assessment by the Government of India).
Historically, your Company has consecutively achieved an 'Excellent' rating in
FY21, FY22, and FY23.
Recognitions and Awards
Your Company received recognition from several quarters for
its stellar performance in India's green financing sector:
• Upgradation from Schedule B to Schedule A
category CPSE followed by Navratna status awarded by the Department of Public
Enterprises in April 2024
• 'CMD of the Year' award under the Mini-Ratna
category at the 13th PSE Excellence Awards organized by the Indian Chamber of
Commerce
• Runner-up Awards in four key categories: 'Operational
Performance Excellence', 'Corporate Governance', 'Corporate Social Responsibility &
Sustainability', and 'Inclusivity- Contribution of Women and DifferentlyAbled In'
under the Mini-Ratna category at the 13th PSE Excellence Awards organized by
the Indian Chamber of Commerce
• 'Excellent' rating under MoU signed with the
Ministry of New & Renewable Energy for the FY23.
PRODUCTS & SERVICES OFFERED
New products launched and financing policies updated
Your Company dynamically reviews its policies and
procedures to meet the evolving needs of the renewable energy sector, thereby ensuring the
availability of a comprehensive range of financial products and related services from
project conceptualization to post-commissioning for renewable energy projects across
sectors.
Your Company offers support to renewable energy projects
across a range of traditional & emerging sectors
including but not limited to Solar energy, Wind energy, Hydropower, Biofuels (CBG,
Ethanol, etc.), Biomass, Briquettes & Pellets, E-mobility, Transmission, Battery
Storage, Pumped Storage Hydro, Green Hydrogen & its derivatives, and RE-related
manufacturing.
In FY24, your Company updated its financing policies in
response to the needs of its borrowers; some key changes can be seen below:
• Empanelment of Lender's Financial Advisors (LFA) for
continued monitoring of borrower accounts and movement of funds
• Product launch for Commercial Bus or Passenger
Vehicle fleet with B2B contracts
• Increase in maximum loan tenor for Electric Mobility
segment from 8 years to 10 years
• Debt coverage for greenfield & brownfield
Hydropower projects enhanced upto 80%
In addition, your Company sanctioned loans across 3 new
emerging renewable energy sectors in FY24 including Smart Meters, Green Hydrogen & its
derivatives, and PM KUSUM. Your Company strives to continually update its policies and
offerings to stay at the forefront of renewable energy financing in the country.
Implementation support provided for key MNRE Schemes
Your Company has been closely involved in the development
and implementation of various policies pertaining to the renewable energy sector. Further,
your Company has served as the implementing agency for the following key MNRE schemes:
• Central Public Sector Undertaking- Phase-II for
setting up grid-connected Solar PV projects
• National Bio-energy Programme
• National Programme on High Efficiency Solar PV
Modules under Production Linked Incentive, Tranche-I
• Generation Based Incentive (GBI)
Co-lending and consulting services offered to partners
During FY24, your Company entered into MoUs with the
following institutions, leveraging its 37 years of experience across the renewable energy
sector:
• For co-lending & co-origination support to
leading Indian Financial Institutions such as IIFCL, Union Bank of India, Bank of
Baroda, Bank of Maharashtra, Indian Overseas Bank, and Punjab National Bank
• For consulting services to support R&D and
renewable energy requirements for IIT, Bhubaneswar and AIIMS, New Delhi
KEY OPERATIONAL INITIATIVES LAUNCHED
Your Company has launched several major initiatives for its
key stakeholders geared towards improving borrower experience, developing its human
resources, enhancing Corporate Governance, driving impactful CSR actions, and offsetting
the carbon footprint of its operations.
Initiatives to improve borrower experience
Close connect with borrowers
Physical and virtual interactions with borrowers, industry
experts and IREDA management were held across cities to understand and proactively address
borrower concerns, build a strong rapport with our borrowers, and usher in transparency.
We have also expanded our physical presence across India
with four strategically located branches in Mumbai, Hyderabad, Chennai, and Bhubaneshwar
to maximize geographical coverage and have deployed on-ground personnel at Bengaluru and
Guwahati.
Digital Process Optimization
Your Company possesses a robust IT infrastructure,
including an Enterprise Resource Planning (ERP) System specifically tailored to meet our
business requirements.
To streamline the loan application process, your Company
offers an online platform for customers that serves as a single point of contact for
filing applications, uploading documentation, and receiving alerts. Borrowers can track
the progress of their applications in real time and view any outstanding tasks or next
steps via the Customer Portal. This enhances borrower experience, offering both ease of
doing business as well as transparency.
Your Company has standardized its loan sanction mechanism
and adopted simplified templates for both pre-disbursement and post-disbursement
documentation to further streamline processes.
Additionally, your Company is continually working to
improve its IT structures with the goal of creating an integrated system that unlocks
operational efficiencies, generates financing risk insights, and facilitates management
review. This integration aims to enhance the overall efficiency, responsiveness, and
accuracy of our services.
Initiatives to develop human resources
The HR function at your Company operates with a focus on
talent attraction, engagement, development, retention, and well-being.
The following key HR initiatives were undertaken in FY24 to
enhance organizational capabilities and drive forward key objectives for your Company's
growth:
• Strategic workforce expansion
Your Company is expanding in line with its robust growth
with 25 new personnel inducted during FY24. The new hires range from Executive-Trainees
to General Manager level across various functions such as Technical, Finance, Company
Secretariat, Legal, etc. The total employee strength of your Company was 173 as on 31st
March 2024 excluding Board Level Executives.
• Promotion of diversity
Your Company is dedicated to promoting equitable
representation and diversity. The strength of female employees is a crucial aspect of
workforce diversity and gender equality. The number of female officials as on 31st March
2024 was 46, i.e., 26.6% of the total employee strength. Your Company ensures due
compliance with the Directives and Guidelines issued by the Government of India pertaining
to the welfare of SC/ ST/ OBC employees. Our strategies for talent attraction, engagement,
development, and retention are designed to cultivate an inclusive and equitable
environment for all employees.
• Regular interaction with employees for insights
& feedback
Your Company maintains open communication and engagement
through various strategies including
• Periodic open-house interactions led by the CMD to
boost morale and acknowledge employee efforts
• Annual feedback collection from employees to
implement actionable suggestions
• Offsite Strategy meetings to review, streamline, and
update IREDA policies & processes
• Employee engagement and wellness
Throughout FY24, your Company hosted a variety of cultural
and wellness events, including cleanliness drives, social gatherings, and wellness meets.
These events are aimed at boosting employee connect and morale as well as fostering a
cohesive corporate culture aligned with your Company's mission.
Your Company actively fosters a holistic approach to
employee wellness by incorporating daily meditation and yoga sessions, an in-house fitness
facility with professional trainers, and regular preventive health check-ups. In FY24,
employees also participated in a series of health awareness training sessions covering
critical topics such as Liver Health, Asthma Care, and Cancer Awareness intended to equip
staff with important health knowledge.
• Best-in-class employee trainings
To enhance the skills and knowledge of its workforce, your
Company has implemented a comprehensive training plan. This includes specialized training
programs at renowned institutes in India and abroad as well as tailored in-house sessions
by leading experts.
Employees have participated in a variety of programs
covering topics such as Cyber-security, Financial Management, Corporate Governance,
Behavioral and leadership training, etc. Additionally, the Company engaged in global
forums and conferences to further extend learning opportunities beyond the traditional
setting.
These initiatives collectively led to the achievement of
2,081 training man-days reflecting a strong commitment to continuous professional
development and global engagement.
Initiatives for robust Corporate Governance
Your Company is committed to upholding the highest
standards of professionalism, integrity, accountability, fairness, and transparency,
thereby ensuring both efficient and ethical business practices.
Your Company is dedicated to adhering to the highest
standards of Corporate Governance complying with all relevant regulations under the
Companies Act 2013, the SEBI LODR Regulations 2015, the Guidelines on Corporate Governance
for Central Public Sector Enterprises 2010 issued by the Department of Public Enterprises,
as well as the Secretarial Standards established by the Institute of Company Secretaries
of India amongst others.
Committed to ethical practices, your Company prioritizes
transparency and stakeholder value in all business operations and relevant legal
disclosures. Notably, your Company has set a new benchmark by publishing its Annual
Audited Financial Results within just 19 days which is the fastest publication of Audited
Results in the Banking and NBFC space in India, significantly ahead of SEBI's 60-day
deadline. This reflects your Company's efficient internal processes and advanced digital
data management.
Initiatives for impactful Corporate Social Responsibility
As a mission-oriented pure-play green financing entity,
your Company is dedicated to social responsibility focusing on impactful initiatives
aligned with the Government of India's sustainable goals. These initiatives include
promotion of health & nutrition, protection of the environment, and the development of
underprivileged areas.
In FY 24, your Company embraced the 'Health &
Nutrition' theme, sanctioning 16 CSR projects with 9 projects specifically dedicated
to this theme. Significant actions include:
• Installation of solar streetlights and educational
support in Kalahandi, Odisha
• Deployment of 1000 solar street lighting systems in
Siddharthnagar, Uttar Pradesh
• Enhancement of medical and educational facilities in
Balrampur, Uttar Pradesh
• Supply and installation of Solar PV systems and
medical equipment in Chandauli, Uttar Pradesh
During FY24, your Company sanctioned '16.65 Crore for 16
projects under CSR funds (including administrative costs) and disbursed '10.29 Crore based
on project progress over the year (including disbursements from unspent account for
previous years). These initiatives underscore your Company's focus on fostering
sustainable development and improving community welfare in India's underdeveloped regions
alongside its commitment to the growth of India's renewable energy sector. Your Company
has launched an online CSR Portal to facilitate transparency in receipt & disposal of
CSR requests.
Initiatives for offsetting carbon footprint of operations
In addition to supporting the country's decarbonization
goals, your Company strives towards achieving carbon neutrality in its operations. Your
Company owns and operates a 50 MW Solar plant at Kasaragod, Kerala which produces
renewable energy which resulted in reduction of ~72,577 Tonnes of CO2 for FY24.
VISION FOR THE FUTURE
Outlook for India's green financing sector & key
Government initiatives to promote RE
India's green financing sector is on a robust growth
trajectory buoyed by significant Government of India initiatives and a global commitment
to increase renewable energy capacity.
Over '46 Lakh Crore investment is expected towards
renewable energy sectors till 2030 in India. In line with this requirement, the FY25 Union
Budget outlay for renewable energy has increased 46% over last year reaching '14,980
Crore.
Further, various supportive policies and financial
incentives have been launched by the Government of India to ensure well- rounded
development across various clean energy sectors. Some of the key policies announced in
FY24 include:
• Utility scale Solar & On-shore Wind: 50
GW annual bidding calendar notified, with at least 10 GW Wind capacity over 2023-2028 with
allocations across SECI, NTPC, NHPC and SJVN. Further, 50 Solar parks with aggregate
capacity ~37,490 MW across 12 states have been approved by MNRE with ~10,401 MW capacity
already commissioned.
• Rooftop Solar PM Surya Ghar Muft Bijli Yojana
launched with coverage across 10 Million houses with a financial outlay of '75,021 Crore.
Each household covered under the scheme will be provided 300 units of free electricity
each month leading to annual savings of '15,000 - 18,000 per household.
• Decentralized Solar: Expansion of PM KUSUM
approved with revised targets of 49 Lakh pumps to be installed / solarized under Component
B & C of the Scheme. Simplification of land aggregation under Component C
and issuance of empaneled list of vendors & benchmark
cost under Component B are some of the key simplifications introduced to enhance uptake of
the scheme.
• Offshore wind: Bidding trajectory for 37 GW
off-shore wind capacity indicated by MNRE alongside completion of planning for
transmission infrastructure by CTU for initial 10 GW offshore capacity (5 GW each off
Gujarat and Tamil Nadu coasts). In addition, Offshore Wind Lease rules have been released
with potential to extend lease term upto 35 years.
• Hydro power: Tariff Rationalization provision
offered to developers to determine tariff via back loading after increasing project life
to 40 years, increasing debt repayment period to 18 years, and introducing escalating
tariff of 2%. Further, ISTS charges have been partly waived for hydropower projects, in
increments of 25%, from 01st July 2025 to 01st July 2028 for
projects wherein construction work is awarded and PPA is signed upto 30th June
2028.
E-mobility: PM E-bus Sewa Scheme approved by the Union
Cabinet with target of deploying 10,000 E-buses nationwide at an estimated budget of
'57,613 Crore with focus on cities with population greater than 3 Lakh (as per 2011
census)
In addition to the above recently introduced policies, the
Government of India had previously instituted various supply and demand side enablers
contributing to the continued development of the renewable energy sector.
Some of the key policies are:
• Tariff-based competitive bidding guidelines for
Solar & Wind
• Renewable Purchase Obligation & Energy Storage
Obligation trajectory for States
• Green Open Access rules for transmission of
renewable energy across States
• Production-linked incentives for manufacturing of
solar modules, electrolyzers, batteries, etc.
• Financial assistance for selected sectors such as
Central Financial Assistance for Waste to Energy, Briquette & Biomass, etc. and
Viability Gap Funding for Battery Storage, Offshore Wind, etc.
• ISTS waiver extensions for Green Hydrogen, Green
Ammonia and Hydropower projects amongst others
Holistic strategy for growth
As India's catalytic green financing agency, your Company
is dedicated to ensure that the sector is equipped with the right financial products,
favorable financing costs, and sufficient
funding as required. This commitment is crucial for scaling
up both established and emerging technologies critical for achieving net-zero emissions.
Business growth
To maintain our leadership in traditional renewable energy
sectors such as Solar energy, Wind energy, Hydropower, Biomass, Biofuels, etc., your
Company intends to play a critical role in meeting the expanding financing requirements,
set to increase notably with the Government of India's target of 500 GW installed
non-fossil fuel based power capacity by 2030. We will continue to innovate with new
financial products in line with evolving business models and enhance presence in
consortium financing with the help of new MoUs signed with leading financial institutions.
In addition to enhancing its presence in traditional
renewable sectors, your Company is also focusing on new and emerging green technologies.
This includes strategic growth areas aligned with India's renewable energy goals such as
Green Hydrogen, Pumped Hydro Storage, Battery Storage, Offshore Wind, Green Energy
Corridors, Rooftop Solar, and Green Mobility. We have established a dedicated team to
develop and assess projects in these new sectors. In addition, we dynamically launch
innovative financial products and continuously invest in training our employees on new
green technologies and financial structures.
Further, the newly opened office in GIFT City, Gandhinagar,
will specialize in providing debt options denominated in foreign currencies thereby
facilitating natural hedging. This offering can significantly reduce financing costs for
sectors which entail either uptake or offtake in foreign currency, e.g., Green Hydrogen
& its derivatives and Renewable Energy Manufacturing.
Borrowing optimization
Your Company is dedicated to reducing borrowing costs to
boost both competitiveness and profitability. We are leveraging our established
reputation, strong credit rating, relationships with key financial institutions as well as
constantly evolving our fund raise strategy to maximize funding efficiency. This approach
ensures that your Company continues its efforts in raising financing at competitive rates
from domestic and international capital market issuances, including green bonds. We also
leverage our partnerships with national financial institutions and
multilateral/international development organizations given our position as a pure-play
green financier.
Digitally enabled organization
To support its non-linear growth, your Company is advancing
a digital transformation to streamline operations and enhance profitability. This includes
expanding digital offerings, scaling automation and data analytics, and incentivizing
digital channel use throughout the loan lifecycle.
Concurrently, your Company is focusing on further
digitizing enabling functions such as Treasury Management, Legal Documentation, Recovery,
Risk Management, Internal Audit,
and Compliance/Governance.
Your Company's paperless office, IREDA Business Center at
NBCC Office Complex in Delhi, creates an environment conducive to digitization-enabled
employee productivity and collaboration.
This comprehensive strategy underscores your Company's
commitment to facilitating access to sustainable financing, which is critical for
transitioning to a greener economy.
ACKNOWLEDGEMENTS
I would like to extend my heartfelt gratitude to the
Government of India, particularly the Ministry of New & Renewable Energy (MNRE) and
the Department of Investment and Public Asset Management (DIPAM), for their unwavering
support to our organization. Their assistance in capital infusion and dividend exemption
for capital augmentation has been invaluable.
I also extend my thanks to other Government entities,
including the Department of Public Enterprises, NITI Aayog, Ministry of Finance, Ministry
of Power, Ministry of Corporate Affairs, and various other ministries and departments of
the Government of India.
I am grateful for the support and cooperation of the Office
of the Comptroller & Auditor General of India, the Reserve Bank of India, the
Securities and Exchange Board of India, the National Stock Exchange of India Ltd., the
Bombay Stock Exchange Ltd., and other regulatory authorities.
A special thanks to our Statutory Auditors, Secretarial
Auditors,
Cost Auditors, and Internal Auditors for their contribution
towards consistently improving the standards of governance across institutions in the
Country.
I deeply appreciate the continued trust of our customers,
lenders, shareholders and investors including state governments, state power utilities,
private entrepreneurs in the green energy sector, and our domestic and international
funding partners. Their faith in the Company is our driving motivation.
I also extend my appreciation to my esteemed colleagues on
the Board for their invaluable contributions to strengthening the Company.
Last but not least, I would like to recognize the tireless
efforts of our dedicated employees whose unwavering commitment has propelled the Company
to achieve new standards of excellence every time.
With that said, I kindly request the adoption of the
Directors' Report, the Audited Financial Results, and the Auditors' Report for the Fiscal
Year 2023-24.
Thankyou,
With warm regards,
|
Sd/- |
|
Pradip Kumar Das |
| Date: 31.05.2024 |
Chairman & Managing Director |
| Place: New Delhi |
DIN:07448576 |