IREDA Signs MoU with MNRE, Sets ₹8,200 Crore Revenue Goal for FY 2025-26
The Indian Renewable Energy Development Agency Limited (IREDA) has taken yet another decisive step in reinforcing India’s clean energy future. On 25 August 2025, the renewable energy financing major signed a Performance Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), Government of India. This strategic agreement outlines ambitious operational and financial targets for FY 2025-26, including a Revenue from Operations target of ₹8,200 crore.
The MoU was signed at the Atal Akshay Urja Bhawan in New Delhi by Shri Santosh Kumar Sarangi, Secretary, MNRE, and Shri Pradip Kumar Das, Chairman and Managing Director, IREDA, in the presence of senior officials from both organizations.
IREDA’s Consistent Performance Record
The revenue target builds on IREDA’s consistent track record of exceeding government-set expectations. In FY 2024-25, IREDA surpassed its projected revenue goal of ₹5,957 crore, recording an impressive ₹6,743.32 crore. This accomplishment reflects both operational efficiency and strong sectoral demand for renewable energy financing.
Notably, IREDA has maintained an ‘Excellent’ rating in MoU performance for four consecutive years since FY 2020-21. For FY 2023-24, the agency emerged as the top performer in the NBFC and Power sector, and ranked among the top four Central Public Sector Enterprises (CPSEs) across all industries, as per the Department of Public Enterprises (DPE).
CMD Shri Pradip Kumar Das attributed this success to a combination of visionary leadership, financial prudence, and unwavering commitment to India’s climate goals. “With the hope for continuing excellent performance for this year also, we are committed to sustaining our track record of excellence,” he said at the MoU signing.
Key Performance Indicators Under the MoU
The newly signed MoU includes comprehensive financial and operational benchmarks, beyond revenue targets alone. These performance parameters include:
- Return on Net Worth
- Return on Capital Employed
- NPA to Total Loans ratio
- Asset Turnover Ratio
- EBTDA (Earnings Before Tax, Depreciation and Amortisation)
By incorporating these multidimensional metrics, the MoU ensures that IREDA’s growth is not just about revenue numbers but also about financial stability, efficiency, and sustainability.
Driving India’s Renewable Energy Ambitions
IREDA has been at the forefront of India’s renewable energy transition, serving as a specialized Non-Banking Financial Company (NBFC) under MNRE. Its mandate is to accelerate the adoption of renewable energy technologies and energy efficiency projects through innovative and accessible financing models.
The signing of this MoU comes at a crucial juncture for India, which has committed to achieving 500 GW of non-fossil fuel-based electricity capacity by 2030 and achieving net zero emissions by 2070. As the country scales up renewable energy deployment across solar, wind, biomass, hydro, and emerging technologies like green hydrogen, IREDA’s role as a financing backbone becomes indispensable.
Building Investor and Stakeholder Confidence
The MoU with MNRE signals a strong alignment between government objectives and institutional performance. For investors, it reflects financial discipline and governance standards in a sector that is witnessing exponential growth. For renewable energy developers and stakeholders, it offers confidence in IREDA’s ability to provide consistent and timely credit support.
Given the rapid evolution of India’s clean energy market, with increasing private sector participation and global investment interest, IREDA’s ₹8,200 crore revenue target for FY26 is more than just a financial milestone. It is a marker of India’s seriousness in scaling climate-positive infrastructure.
Industry and Policy Implications
The MoU is also a reflection of the Government of India’s broader strategy to strengthen CPSEs in achieving national sustainability and economic goals. By setting performance-linked targets, MNRE ensures accountability and competitiveness while encouraging enterprises like IREDA to maintain operational excellence.
Experts believe this development will also contribute to India’s positioning in the global renewable energy market. With the rise of green bonds, carbon markets, and climate finance instruments, IREDA is poised to be a key institution in bridging domestic capital requirements with international financial flows.
Strengthening the Green Financing Ecosystem
In recent years, IREDA has launched several initiatives to expand its reach, including:
- Green financing mechanisms for small and medium enterprises (SMEs) in renewable energy.
- Support for innovative technologies like energy storage and hydrogen.
- Streamlined loan processes to ensure faster disbursal and project implementation.
These measures have not only contributed to the agency’s revenue growth but also expanded financial inclusion in India’s clean energy ecosystem, enabling smaller players and local entrepreneurs to participate in the green economy.
The Road Ahead for FY 2025-26
As India advances toward its renewable energy targets, IREDA’s role will continue to evolve. The ₹8,200 crore revenue target is expected to be achieved through:
- Scaling loan disbursals for large-scale solar and wind projects.
- Supporting decentralized renewable energy solutions in rural and semi-urban India.
- Financing emerging areas like electric mobility, biofuels, and offshore wind.
- Leveraging public-private partnerships for infrastructure growth.
With India’s renewable energy capacity already exceeding 200 GW as of mid-2025, the momentum is clear. IREDA’s robust financial strategy ensures that this growth is sustainable, inclusive, and aligned with national and global climate commitments.
The signing of the MoU between IREDA and MNRE is more than a contractual agreement—it is a reaffirmation of India’s commitment to green growth and sustainable development. By setting ambitious financial and performance targets, IREDA not only strengthens its institutional credibility but also reinforces its role as a catalyst for India’s renewable energy revolution.
As CMD Shri Pradip Kumar Das rightly highlighted, excellence is not an event but a consistent pursuit. With the momentum of past achievements and a bold vision for the future, IREDA’s journey in FY 2025-26 promises to be another milestone in India’s path to a cleaner, greener tomorrow.
For more in-depth analysis and inspiring climate news, click here.
