With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the follo

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UPSC Prelims is a competitive examination conducted in India. This question is from the 2015 UPSC Prelims Economy paper.

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Question

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?It is a Public Limited Government Company.It is a Non-Banking Financial Company.Select the correct answer using the code given below:

Accepted Answer

Correct Answer: C — Both 1 and 2Step-by-step Solution:Statement 1 — IREDA is a Public Limited Government Company: This is correct. The Indian Renewable Energy Development Agency Limited (IREDA) was established in 1987 as a Public Limited Government Company — it is incorporated as a company under the Companies Act with the Government of India holding 100% shares (a fully government-owned enterprise). IREDA was granted Miniratna (Category I) status, which allows it greater operational and financial autonomy. In 2023, IREDA completed its Initial Public Offering (IPO) and got listed on stock exchanges — with government still holding a majority stake. ✓Statement 2 — IREDA is a Non-Banking Financial Company (NBFC): This is correct. IREDA was established as a Non-Banking Financial Institution (NBFI), specifically a Non-Banking Financial Company registered with the Reserve Bank of India. It does not accept demand deposits from the public (unlike commercial banks) but provides loans, advances, and financial assistance for renewable energy projects. As an NBFC, IREDA is regulated by RBI for its financial activities while being under the administrative control of the Ministry of New and Renewable Energy (MNRE). ✓Key Concept: IREDA (Indian Renewable Energy Development Agency Limited): established 1987; under MNRE; provides financial assistance for renewable energy and energy efficiency projects; financing covers: solar power, wind power, hydro power, biomass, biogas, cogeneration, energy efficiency projects; term loans, refinancing; Miniratna Category I company; issued Green Bonds (2017) — India's first government NBFC to do so; IPO in 2023 — 15% divestment; listed on NSE and BSE. NBFC characteristics: provide loans and advances; do not accept demand deposits; registered under Companies Act; regulated by RBI for financial activities; types: NBFC-ND (non-deposit taking), NBFC-D (deposit taking); differ from banks — cannot issue cheques, no deposit insurance, different prudential norms. Government NBFCs: IREDA (renewable energy), NABARD (rural development — though also termed development finance institution), NHB (National Housing Bank — housing finance), NaBFID (National Bank for Financing Infrastructure and Development, 2021).

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?It is a Public Limited Government Company.It is a Non-Banking Financial Company.Select the correct answer using the code given below:

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With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?It is a Public Limited Government Company.It is a Non-Banking Financial Company.Select the correct answer using the code given below:

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More Questions from Renewable Energy – Solar, Wind, Hydrogen & Green Fuels

Frequently Asked Questions