Wed Sep 18 01:00:04 UTC 2024: ## IREDA to Expand Overseas, Seek International Green Funding

**Gandhinagar:** State-run Indian Renewable Energy Development Agency (IREDA) is set to expand its operations globally. The company is looking to finance projects abroad through its subsidiary in GIFT City, Ireda Global Green Energy Finance IFSC Ltd, and secure funding from international green funds.

The subsidiary will focus on financing solar component manufacturing and green hydrogen projects in India for export markets. IREDA’s Chairman and Managing Director, Pradip Kumar Das, stated that the GIFT City office would facilitate seamless foreign currency transactions, allowing Indian developers to access loans in forex and repay in the same currency.

“We will approach green funds and source funding through GIFT City, reducing borrowing costs and hedging expenses,” said Das. “Developers with export earnings from domestic projects would benefit from this arrangement, especially those involved in solar component manufacturing and green hydrogen production.”

IREDA is currently in talks with several companies for financing and expects to announce tie-ups soon. The company has also received approval from the Reserve Bank of India to set up a subsidiary at the International Financial Services Centre (IFSC) in GIFT City.

On the domestic front, IREDA is preparing for a follow-on public offering (FPO) to raise ₹4,500-5,000 crore. The company expects to receive government approval for the stake dilution soon and hopes to launch the FPO by the end of the year. The funds raised will be used to expand its renewable energy portfolio in India.

IREDA is also seeking inclusion under Section 54EC of the Income Tax Act, which would exempt investors buying IREDA bonds from capital gains tax, making the bonds more attractive. The company expects an approval for this within a month.

In addition to these initiatives, IREDA has committed to financing an additional ₹5 trillion worth of green transition projects by 2030. The company has already financed projects worth nearly ₹2 trillion and facilitated the development of 27 GW of renewable energy capacity. This includes solar, wind, hydro, CNG, ethanol, e-mobility, and charging infrastructure projects.

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