IREDA Plans An Alternate Investment Fund To Tap Large Institutional Investors

Indian Renewable Energy Development Agency (IREDA) Ltd is planning an Alternative Investment Fund (AIF) to tap large institutional investors.

IREDA, established as a Non-Banking Financial Institution in 1987 under the Ministry of New and Renewable Energy, is engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.

Addressing the 35th Annual General Meeting (AGM) of agency's shareholders, IREDA chairman and managing director Pradip Kumar Das said, “IREDA is in the process of setting up a debt fund in the form of an Alternate Investment Fund (AIF) to tap large Institutional Investors viz. Pension funds, Insurance Funds, Environmental, Social and Governance Funds, etc".

"AIF will also help IREDA in financing new projects for borrowers who are nearing the exposure limit. Further, the company is also planning to do Asset-Based Securitisation (ABS) by issuance of Pass-Through Certificates," Das said.

Earlier last month, while delivering the keynote address at an event on Renewable Energy Management for Cooperatives, Das said that India's renewable energy sector has potential to employ 10 lakh individuals by 2030.

"India's Renewable Energy (RE) sector could potentially employ around 10 lakh people by 2030, which would be ten times more than the existing workforce of an estimated 1.1 lakh employed by the sector," he said.