IREDA to consider raising funds via non-convertible bonds

State-owned renewable energy player IREDA recently said its board will consider the proposal for raising funds through issuance of non-convertible bonds. “The next Board Meeting…to consider a proposal for raising funds through issue of non-convertible bonds in the nature of debenture,” Indian Renewable Energy Development Agency (IREDA) said in a filing to BSE. IREDA had earlier this month said that it may raise Rs 1,500-2,000 crore through taxable bonds in the ongoing fiscal to finance projects. The money raised will be utilised for financing renewable energy projects. Last fiscal, IREDA had raised Rs 2,000 crore through tax-free bonds. IREDA CMD K S Popli had earlier said that government stopped tax-free bonds as it thinks that these would distort the market. “Some are raising taxable bonds and some are raising tax-free bonds probably that is their (government) thinking,” he had said. IREDA is a ‘mini ratna’ under the administrative control of Ministry of New and Renewable Energy (MNRE). The main objectives of IREDA are to give financial support to specific projects and schemes for generating electricity and/or energy through new and renewable sources and conserving energy through energy efficiency among others.

Source:PTI