Indian Renewable Energy Development Agency (IREDA) has inked a loan pact with SJVN Green Energy for financing Rs 4,444.71 crore for a 1,000 MW solar power project at Bikaner, Rajasthan.

The IREDA funded project will connect to 400/220 KV sub-station Bikaner-II (near Bikaner). 

What is the purpose of IREDA?

• Indian Renewable Energy Development Agency Limited (IREDA) is a Miniratna (Category-I) government of India Enterprise under the administrative control of the ministry of new and renewable energy (MNRE). 

• IREDA is a public limited government company established as a non-banking financial institution in 1987 engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy, energy efficiency and conservation.

• Since its inception, the company has played a catalytic role in developing market for financing renewable energy and energy efficiency (EE) projects. 

• IREDA with years of techno-commercial expertise, plays a catalytic role in the RE project financing which gives confidence to the financial institutions/banks to lend in the sector. 

• Over the years, IREDA has sanctioned loans in renewable energy and energy efficiency sector aggregating to Rs 1,20,522 crore, disbursed Rs 77,946 crore and supported more than 19,453 MW of RE capacity in the country till March 31, 2022.

SJVN Limited 

• SJVN Limited is a Miniratna (Category-I) and Schedule ‘A’ Central Public Sector Enterprise (CPSE) under administrative control of the ministry of power.

• It was incorporated on May 24, 1988 as a joint venture of government of India and government of Himachal Pradesh to plan, promote, develop all forms of power, both renewable as well as non-renewable and all ancillary activities related thereto, in India and abroad.

• Beginning with a single project and single state operation (India’s largest 1,500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh), SJVN is currently implementing hydroelectric projects in Himachal Pradesh and Uttarakhand in India besides neighbouring countries — Nepal and Bhutan. 

• Apart from hydropower, SJVN has also ventured into thermal, wind power, solar power and transmission.

Additional read:

What is Maharatna, Navratna and Miniratna status?

Under Articles of Association, the board of directors of Central Public Sector Enterprises (CPSEs) enjoys autonomy in respect of recruitment, promotion and other service conditions of below board level employees. The government has granted enhanced powers to the Boards of the profit-making enterprises under various schemes like Maharatna, Navratna and Miniratna.

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