Renewable Energy Company IREDA gets upgraded from ‘Schedule B’ to ‘Schedule A’ Central Public Sector Enterprise

Source: The post is based on the article “Renewable Energy Company IREDA gets upgraded from ‘Schedule B’ to ‘Schedule A’ Central Public Sector Enterprise” published in “PIB” on 30th September 2023.

What is the News?

Indian Renewable Energy Development Agency Ltd. (IREDA) has been upgraded from ‘Schedule B’ to the ‘Schedule A’ category of Central Public Sector Enterprises.

How are CPSE’s grouped into different schedules?

The Department of Public Enterprises, Ministry of Finance has laid down criteria for initial as well as re-categorization of Central Public Sector Enterprises(CPSEs) into appropriate schedules.  

All CPSEs are required to be categorized into four schedules, namely, Schedule ‘A’, Schedule ’B’, Schedule ‘C’ and Schedule ‘D’.

The categorization of CPSE has implications mainly for organizational structure and salary of Board level incumbents of the concerned CPSE. 

What is Indian Renewable Energy Development Agency Ltd.(IREDA)?

IREDA is a Mini Ratna (Category–I) non-banking financial institution under the administrative control of the Ministry of New and Renewable Energy (MNRE).

It is a  Public Limited Government Company established as a Non-Banking Financial Institution (NBFC) in 1987.

IREDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as NBFC with Reserve Bank of India (RBI).

Purpose: It is primarily engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.

Motto: ENERGY FOR EVER

Funding: IREDA generates its revenue through the interest and principal repayments from the projects it finances, as well as by raising funds from the market and through borrowings.

How will IREDA elevation from ‘Schedule B’ to the ‘Schedule A’ category help?

The elevation of IREDA to the ‘Schedule A’ category opens the door for its upgradation from “Mini Ratna (Category– I)” to “Navratna” status. 

This will grant increased financial autonomy to IREDA, allowing the organization to make more strategic decisions to further its commitment to accelerating the adoption of renewable energy solutions across the country.