Executive Summary:
This document is the response of the Minister of State for New and Renewable Energy and Power to Lok Sabha Unstarred Question No. 2970, answered on August 6, 2025, regarding the criteria for loan disbursement by the Indian Renewable Energy Development Agency (IREDA). It outlines the criteria adopted by IREDA for granting loans to private players, details the amount of loans assigned over the last five years, lists Non-Performing Assets (NPAs), and describes steps taken to ensure loan quality.
Key Points / Main Content:
IREDA Loan Criteria:
* IREDA has comprehensive Financing Norms available on its website (www.ireda.in).
* Key criteria include project viability, promoter credentials, clearances and approvals, offtake agreement, debt-equity ratio, security and collateral, assessment through Credit Risk Rating System (CRRS), and compliance with IREDA guidelines.
* IREDA provides concessions to specific entrepreneurs, including those belonging to SC/ST, Women, Ex-Servicemen, and Handicapped categories, as well as those setting up projects in Northeastern States, Sikkim, Islands, Estuaries, and Union Territories of Jammu & Kashmir and Ladakh.
* Rebates in interest rates are offered post-commissioning based on independent external rating agencies, along with special concessions for MSMEs.
Loan Sanctions and Disbursements to Private Sector Borrowers (Amount in Crores):
* 2020-21: Loan Sanctions - 6,759.30, Loan Disbursements - 4,588.35
* 2021-22: Loan Sanctions - 12,201.45, Loan Disbursements - 7,817.04
* 2022-23: Loan Sanctions - 24,391.89, Loan Disbursements - 15,097.86
* 2023-24: Loan Sanctions - 29,773.28, Loan Disbursements - 18,614.63
* 2024-25: Loan Sanctions - 32,802.17, Loan Disbursements - 18,521.87
Non-Performing Assets (NPAs):
* A list of NPA accounts as of March 31, 2025, is provided in Annexure I, including the borrower's name and outstanding principal amount.
* Total NPAs for FY 2024-25: ₹703.66 Crores
* Total NPAs for FY 2023-24: ₹0 Crores
* Total NPAs for FY 2022-23: ₹7.11 Crores
* Total NPAs for FY 2021-22: ₹4.87 Crores
* Total NPAs for FY 2020-21: ₹82.97 Crores
* Grand Total NPAs: ₹798.61 Crores
Loan Quality Assurance:
* IREDA employs a robust credit appraisal process, policies, and procedures.
* Key parameters, including technical and financial aspects, sponsor/promoter contribution, borrower creditworthiness, technological specifications, project performance, offtake agreements, and statutory compliances, are assessed during appraisal.
* Third-party assessments are obtained for raw materials, project costs, working capital requirements, and finished products.
* Internal ratings, KYC, and risk assessments are conducted for projects.
* Loans are monitored throughout the project lifecycle.
* Lenders' Independent Engineers (LIE) and Lenders' Financial Advisors (LFA) are appointed for independent due diligence.
* Site inspections are carried out to assess project progress.
* Post-disbursement monitoring includes regular review of trust and retention accounts, debt service reserve accounts, plant load factor, insurance coverage, and compliance with security conditions.
* Guarantor strength is assessed annually, and periodic meetings are held with borrowers to discuss project-specific issues.
Impact Analysis:
Private Sector Borrowers:
* Impact: Subject to IREDA's financing norms and appraisal processes for loan eligibility and continued monitoring during the project lifecycle. NPAs may result in further scrutiny and potential recovery actions.
* Action Required: Ensure compliance with IREDA guidelines, maintain project viability, meet repayment obligations, and address any issues raised during monitoring.
IREDA:
* Impact: Responsible for adhering to its financing norms, conducting thorough due diligence, managing loan portfolios, and mitigating the risk of NPAs.
* Action Required: Continuously refine appraisal processes, strengthen monitoring mechanisms, and take appropriate action to recover outstanding amounts from NPA accounts.
Key Entities Referenced
Indian Renewable Energy Development Agency (IREDA): A Non-Banking Finance Company (NBFC) that provides financial assistance to renewable energy projects.
Ministry of New and Renewable Energy: The ministry responsible for all matters relating to new and renewable energy.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
Non-Performing Assets (NPAs): Loans or advances where principal or interest payments are overdue.
Shri Rao Rajendra Singh: The Member of Parliament who raised the unstarred question.
Shri Shripad Yesso Naik: The Minister of State for New Renewable Energy and Power who provided the answer.
Jammu and Kashmir: A Union Territory of India, mentioned in the context of concessions for projects set up in specific regions.
Ladakh: A Union Territory of India, mentioned in the context of concessions for projects set up in specific regions.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2970
ANSWERED ON 06.08.2025
CRITERIA FOR LOAN BY IREDA
2970. SHRI RAO RAJENDRA SINGH
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the criteria adopted by the Indian Renewable Energy Development Agency (IREDA) to grant
loans to private players;
(b) the amount of loans assigned to private players by the agency during the last five years;
(c) the list of Non Performing Assets (NPAs) that have been accumulated during such a
devolution during the last five years;
(d) whether any steps have been taken by the Non-Banking Finance Company (NBFC) to ensure
the quality of loans devolved to Public and Private Sector companies; and
(e) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) Indian Renewable Energy Development Agency (IREDA) has comprehensive “Financing Norms”
which stipulates the detailed requirement / criteria, terms and conditions for availing loans from IREDA
for various sectors under different schemes. The “Financing Norms” are available on IREDA’s website
(www.ireda.in) for reference of developers / borrowers. The key criteria inter-alia include Project
Viability, Promoter Credentials, Clearances and approvals, Off-take Agreement, Debt-Equity Ratio,
Security and Collateral, Assessment through Credit Risk & Rating System (CRRS) and Compliance with
IREDA Guidelines.
IREDA also provide certain concessions / rebates to entrepreneurs belonging to SC/ST, Women, Ex-
Servicemen and Handicapped categories, entrepreneurs setting up Projects in North-eastern States,
Sikkim, Islands, Estuaries, and Union Territories of Jammu & Kashmir and Ladakh, rebates in interest
rate after commissioning based on independent external rating agencies, special concessions for MSMEs
etc.
(b) The details of loan sanctions and disbursements to private sector borrowers during the last 5 financial
years are given below:
(Amount in Crores)
Parameters 2020-21 2021-22 2022-23 2023-24 2024-25
Loan 6,759.30 12,201.45 24,391.89 29,773.28 32,802.17
Sanctions
Loan 4,588.35 7,817.04 15,097.86 18,614.63 18,521.87
Disbursements(c) The list of Non-Performing Assets (NPAs) accounts during the last five financial years which are in
the books of IREDA as on 31.3.2025 is given in Annexure-I.
(d)&(e) IREDA has robust credit appraisal process, policies and procedures to appraise and extend
financial assistance to various renewable energy projects. During the appraisal process, key parameters
on technical and financial viz. sponsor / promoter contribution, borrower creditworthiness and history,
technological specifications / performance of the project, offtake agreement and other statutory
compliances are assessed. Based on data available for various parameters such as technology/ capacity
utilization, Engineering Procurement & Construction (EPC) performance etc. are also factored in during
appraisal. IREDA also obtains third party assessment on raw material, if any, projects cost, working
capital requirements, finished product and by products etc. Further, IREDA also carries out the internal
rating and Know Your Customer (KYC), risk assessment for the projects.
Further, IREDA monitors the loans throughout the project life cycle. During the implementation period,
IREDA appoints Lender’s Independent Engineer (LIE), Lender’s Financial Advisor (LFA) for the
projects who carry out their independent due diligence. IREDA also carries out site inspections to assess
the project progress. The post-disbursement monitoring mechanism involves regular review of the trust
and retention accounts and debt service reserve accounts, plant load factor of projects, validity/coverage
of insurance for projects, compliance with security conditions etc. apart from assessment of guarantors’
strength on an annual basis. Periodic meetings with borrowers are being conducted to discuss the
projects specific issues along with suggestions / feedback from borrowers, if any.
*****ANNEXURE -I REFERRED TO IN REPLY TO PART (C) OF LOK SABHA UNSTARRED
QUESTION NO. 2970 FOR 06.08.2025
Non-Performing Assets (NPAs) accounts during the last five financial years (01.04.2020 to
31.03.2025)
S. Name of the Borrower Principal Outstanding
No as on 31.3.2025
(Amount: Rs Crore)
FY 2024-25
1 Broadcast Engineering Consultants India Limited 51.11
2 Junagadh Power Projects Pvt. Ltd. 21.45
3 Amreli Power Projects Private Limited 27.30
4 Nawanshahr Power Private Limited 36.58
5 Gandhinagar Waste Fuels Limited 8.12
6 Gandhinagar Waste Fuels Limited 11.39
7 Goodwatts WTE Ahmedabad Private Limited 77.58
8 Goodwatts WTE Rajkot Private Limited 105.00
9 Goodwatts WTE Vadodara Private Limited 97.53
10 Goodwatts WTE Jamnagar Private Limited 56.09
11 Novus Green Energy System Limited 31.39
12 Enlighten Biofuels & Biofertilizer Private Limited 10.10
13 Enlighten Biofuels & Biofertilizer Private Limited 12.22
14 Hetero Renewable Energy Pvt Ltd 7.80
15 Abellon Clean Energy Limited 150.00
Sub-Total 703.66
FY 2023-24
Nil
FY 2022-23
16 Smaru Tech LLP 6.78
17 Balaji Energy Private Limited 0.10
18 Balaji Energy Private Limited 0.23
Sub-Total 7.11
FY 2021-22
19 Siri Ram Syal Hydro Power Private Limited 4.87
Sub-Total 4.87
FY 2020-21
20 Shree Basaveshwar Sugars Ltd. 82.47
21 Marsol Solar Private Limited 0.50
Sub-Total 82.97
GRAND TOTAL 798.61