IREDA plans to raise 1000 cr via bond issue; files DRHP…

 

New Delhi based company "Indian Renewable Energy Development Agency Limited" (IREDA) has filed DRHP for its public issue of tax free, secured, redeemable, nonconvertible bonds in the nature of debentures of face value of Rs 1,000 each for an amount aggregating up to Rs 1,000 crores in fiscal 2014.

The bonds will be issued in one or more tranches. The company is a non-banking financial institution registered with RBI, engaged in extending financing services to projects and schemes for generating electricity and energy through renewable sources and conserving energy through energy efficiency.

The proceeds of the issue may be utilised towards financing renewable energy and energy efficiency projects and augmenting our resource base.

The bonds shall be listed on the BSE and NSE within 12 Working Days from the issue closure date. Karvy, AK Capital and RR Investors will be the lead manager, Link Intime India Private Limited will be the registrar to the issue.

However, SBICAP Trustee Company Limited has appointed as a debenture trustee to the issue.

Source

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Indian Renewable Energy Development Agency (IREDA) Disbursement of Rs. 2125.5 Crores...

 

Total disbursements of Rs. 2125.50  crores have been made by Indian Renewable Energy Development Agency (IREDA) during the financial year 2012-13 to promote, develop and extend financial assistance for the renewable energy projects.

The details of funds allocated to IREDA and disbursements made by IREDA by way of loan for Renewable Energy Projects for the past three years and the current year is as below:

IREDA signs a Memorandum of Understanding (MoU) with Government of India every year. The performance of IREDA is evaluated by the Ministry in consultation with the Department of Public Enterprises, on the basis of targets fixed and achievement made against the various parameters set in the MoU. The performance of IREDA on the basis of MoU has been rated as ‘Excellent’ in the year 2010-11 and ‘Very Good’ each in the year 2011-12 and 2012-13 (Provisional). Besides this, the Annual Report of IREDA is placed before the Parliament after due scrutiny in the Ministry.

(Rs. in crores)

Year	Equity support	Funds mobilized from International Line of Credits and domestic borrowing	Disbursement
2010-11	50	710.11	1224.17
2011-12	50	1744.35	1855.03
2012-13	60	1096.33	2125.5
2013-14	45	680.21	828.93

The following steps have been taken to ensure proper utilization of funds released to the borrowers by IREDA:

• Disbursement against sanction to be linked with the physical and financial progress of the project.
• Periodic inspection of projects by IREDA officials and engineers.
• Utilization Certificate by Chartered Accountant while releasing the installments of disbursement.
• Periodical audit by internal auditor.
• Formation of a Risk Management Committee for top level oversight.
• Obtaining rating from independent rating agencies for the project proposals and ongoing surveillance by them.
• Constitution of Credit Committee for inter-departmental review of Project proposals prior to sanction.
• Strengthening of recovery mechanism.

This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply in the Lok Sabha.

Source: PIB

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Scheme for Promotion of Wind Projects continued; registration process with IREDA for GBI Scheme started...

 

The Ministry of New and Renewable Energy has conveyed the President of India's sanction for continuation of the "Scheme for Promotion of Grid Interactive Power Generation Projects based on Renewable Energy Technologies for Wind Power projects" during 12th Five Year Plan.

According to the Ministry's notification to various State Nodal Department/Agencies and other implementing agencies, the scheme shall be implemented during 2012-17 as per the norms/guidelines and other provisions which were applicable during 2011-12.

In this regard, the Ministry states that it will continue to provide financial support for carrying out Wind Resource Assessment, organization of seminars/ symposiums/ workshop/ training programme, strengthening of technical institutions, testing facilities, engaging consultants, etc. on a case-by-case basis.

In light of this sanction for continuation of this scheme by the President, MNRE is requesting all SNAs to take up projects for implementation as per the guidelines of 2006-07 till further communication.

It may be noted that the scheme for Promotion of Grid Interactive Power Generation Projects based on Renewable Energy Sources started implementation in 2006-07.

Also, in a separate development IREDA has started the registration process for the "Extension Wind GBI Scheme" for the 12 plan ie. (2012-17) which was extended by MNRE vide its notification dated 04/09/2013.

Under the "Extension Wind GBI Scheme"

• a Generation Based Incentive (GBI) will be provided to wind electricity producers @ Re. 0.50 per unit of electricity fed into the grid for a period not less than 4 years and a maximum period of 10 years with a cap of Rs. 100 Lakhs per MW.
• The total disbursement in a year will not exceed one fourth of the maximum limit of the incentive i.e. Rs. 25.00 Lakhs per MW during first four years. The GBI scheme will be applicable for entire 12th plan period having a target of 15,000 MW.
• GBI would be available for wind turbines commissioned on or after 01.04.2012 and for entire 12th plan period and shall be governed by the guidelines.
• The incentive would be available for grid connected wind power projects set up for sale of electricity to the grid, at a tariff notified by SERC and /or State Govt. and also for Captive Wind Power Projects including Group Captive to the extent of sale of electricity to the grid only.
• Exclusion: GBI would not be available to any wind power project selling power to third party, (viz. merchant power plants).

 

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• The complete operational guidelines for the GBI Scheme can be viewed here.
• The link for registration with IREDA for the GBI Scheme can be accessed here.

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Equity capital of IREDA likely to quadruple…

According to reports, the union ministry of new and renewable energy is lobbying the finance ministry to almost quadruple the paid up equity capital of the Indian Renewable Energy Development Agency (IREDA) to enable the latter to catalyse and fund the development of renewable energy projects in India.
“We are petitioning the ministry of finance to invest between Rs 2,000-2,500 crore additional equity capital into Ireda to allow it to expand its role in funding green power projects. We want IREDA to be able to do for the sector what the Rural Electrification Corporation and the Power Finance Corporation are playing in the conventional power sector in the country,” a top bureaucrat with the government of India told Financial Chronicle.
Ireda established on 11th March 1987 as a public limited government company promotes, develops and extends financial assistance for renewable energy and energy efficiency conservation projects. Notified as a public financial institution, Ireda is registered as Non-Banking Financial Company (NFBC) with the Reserve Bank of India (RBI).
The agency’s equity base has been steadily increased by the central government from Rs 539.6 crore at the end of March 2010 to Rs 589.6 crore at the end of March 2011 to Rs 639.6 crore at the end of September 2011.
The main objectives of Ireda are: to maintain its position as a leading organisation to provide efficient and effective financing in renewable energy and energy efficiency/conservation projects and to increase its share in the renewable energy sector by way of innovative financing.
Tarun Kapoor, joint secretary at the ministry of new and renewable energy said the ministry is working on methods by which to channelise a larger quantum of cheaper funds to IREDA.
“At this point of time the agency’s cost of funds is just around 1-1.5 percentage points. We are taking a multi pro­nged approach to this by setting up Solar Corporation of India as well as looking to allow IREDA to raise foreign currency denominated debt in global markets.”

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77.8 MW Solar PV projects receives go ahead from IREDA...

Solar Photovoltaic (SPV) projects of around 77.8 MW capacity by Independent Power Produces (IPPs) under phase-1 of the National Solar Mission (NSM) received a  go ahead from Indian Renewable Energy Development Agency (IREDA).

IREDA is a program administrator for 100 MW rooftop SPV Projects under Phase-1 of NSM. IREDA had received initial responses from over 330 developers during the registration process held on July 15. Subsequently during the final registration process, the initially shortlisted 96 project developers applied online.

Spark Network found that the top four States where they are at different stages of implementation include Rajasthan with a total of 12 MW capacity, Andhra Pradesh (10.5 MW), Haryana (8.8 MW), and Punjab (8.5 MW),” he said.

The development of these 100 MW is different from those which are being handled by the NTPC Vidyut Vyapar Nigam (NVVN).

“The program that is being handled by IREDA is based on State-led initiatives. The States where the respective regulators have been pro-active and come out with attractive tariff rates for solar power within specified timelines, the programs have taken off, as the powers generated through these source will be purchased by the State utilities,” he added.

The role of IREDA is to monitor the performance and pass on the GBI, apart from financing the projects, he added. The projects have to be commissioned by September 2011. The installation cost of solar PV units is about Rs 15 crore per MW.

IREDA, which is under the administrative control of the Ministry of New and Renewable Energy (MNRE), is to promote, develop and extend financial assistance for renewable energy projects. Apart from these 100 MW projects, IREDA is also extending loans to those projects developers, implementing projects being handled by NVVN.

Under the National Solar Mission it is being planned to develop plants for 1,100 MW in the first phase and to have 20,000 MW installed capacity by 2022.

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