Why in news? State-owned Indian Renewable Energy Development Agency (IREDA) has received Infrastructure Finance Company status from the Reserve Bank of India.

Highlights:

• IREDA was earlier classified as an ‘Investment and Credit Company (ICC)’
• The IFC status will also help the company to access a wider investor base for fund mobilisation, resulting in competitive rates for fundraising.
• The recognition of IREDA as an IFC is expected to increase investor confidence and positive outlook in the market
• The grant of IFC status is the recognition of IREDA ‘s 36 years of infrastructure financing and development of renewable energy

What is the criteria to qualify as  Infrastructure finance company ?

• To qualify as an IFC, the NBFC must be a non –deposit accepting loan company , with minimum of 75% of its total assets deployed in infrastructure loans.
• It must have minimum net worth of Rs 3 billion and minimum credit rating of ‘A’ from accrediting rating agencies

About IREDA

• It is formed in 1987 as a Mini Ratna (Category – I) Government of India Enterprise under Government of India
• Organization is administratively controlled by the Ministry of New and Renewable Energy (MNRE).
• The organisation is formed for promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation with the motto: “ENERGY FOR EVER”
• It finances all RE technologies and value chains such as solar , wind , hydro ,bio energy , waste to energy , energy efficiency, e –mobility , battery storage , biofuel and new emerging technologies