IREDA Signs MoU with MNRE, Sets ₹8,200 Crore Revenue Target for FY 2025-26

The Indian Renewable Energy Development Agency Limited (IREDA) has taken another decisive step in advancing India's clean energy ambitions by signing a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE) for the fiscal year 2025-26. The agreement lays out strategic operational and financial targets that reinforce IREDA's role as a key driver in financing India's renewable energy transition.

The MoU was signed at Atal Akshay Urja Bhawan in New Delhi by Shri Santosh Kumar Sarangi, Secretary, MNRE, and Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, in the presence of senior officials from both organizations.

Ambitious Targets for FY 2025-26

Under the agreement, the Government of India has set a Revenue from Operations target of ₹8,200 crore for IREDA in FY 2025-26. This represents a significant step up from the previous year's benchmark, underscoring the growing demand for renewable energy financing and the confidence the government places in IREDA's performance.

In FY 2024-25, IREDA had surpassed expectations, recording ₹6,743.32 crore in operational revenue against a target of ₹5,957 crore. The new MoU not only sets higher revenue goals but also includes a range of performance parameters such as:

• Return on Net Worth (RoNW)

• Return on Capital Employed (RoCE)

• NPA (Non-Performing Assets) to Total Loans ratio

• Asset Turnover Ratio

• EBTDA (Earnings Before Tax, Depreciation, and Amortization)

These metrics are designed to ensure accountability, financial discipline, and efficiency in delivering renewable energy financing solutions.

Sustaining a Track Record of Excellence

Speaking at the signing, CMD Pradip Kumar Das expressed confidence in IREDA's trajectory, highlighting its consistent ability to outperform targets. He said: "With the hope for continuing excellent performance this year also, we are committed to sustaining our track record of excellence. IREDA has earned an 'Excellent' rating in MoU performance for four consecutive years since FY 2020-21."

For FY 2023-24, IREDA was recognized as the top performer in the NBFC and Power sector, and also ranked among the top four CPSEs across all sectors in a performance evaluation of 84 Central Public Sector Enterprises conducted by the Department of Public Enterprises (DPE).

Role in India's Renewable Energy Growth

IREDA, a Government of India enterprise under the MNRE, plays a pivotal role in funding renewable energy projects including solar, wind, biomass, small hydro, and emerging green technologies such as hydrogen and storage solutions. As India strives to achieve 500 GW of renewable energy capacity by 2030 and fulfill its Net Zero by 2070 commitment, IREDA's financing role becomes increasingly crucial.

The performance-based MoU signed with MNRE not only emphasizes operational efficiency but also aligns IREDA's business goals with the national renewable energy roadmap, ensuring that financial support keeps pace with technological advancement and sectoral growth.

Looking Ahead

With enhanced targets and a proven track record, IREDA is positioned to strengthen its leadership in renewable energy financing. The agency's performance in FY 2025-26 will be closely watched as India accelerates investments in clean energy infrastructure, aiming to meet both domestic energy demands and global climate commitments.

The MoU is seen as a confidence-building measure between MNRE and IREDA, reaffirming their shared goal of ensuring financial sustainability and expanding access to clean energy across India.