IREDA plans to raise Rs 600 crore via tax-free bonds by September 10,2015

Highlights:

  • State-run Indian Renewable Energy Development Agency plans to raise Rs 600 crore by issuing tax-free bonds through private placement by September 10,2015.
  • The government had approved an amount of Rs 5,000 crore via tax-free bonds to support and sustain its solar initiatives through various agencies earlier and IREDA is assigned an amount of Rs 2,000 crore.
  • The money raised by IREDA through the issuance of these tax free bonds will be used for financing renewable energy projects.
  • IREDA will lend soft loans at the rate of about 10.5 % to developers to install roof top solar panels to publicise the solar roof top mission of the government.
  • NTPC  has targeted raising Rs 300 crore through the bonds but bids were received for Rs 2,175 crore.
  • Government in July allowed seven state-owned entities, including NTPC, NHAI and IRFC, to raise Rs 40,000 crore in the current fiscal through tax-free bonds.