₹76,000 Crores and Counting: What Exactly Does IREDA Do with All That Money?

India’s renewable energy transition is creating massive business opportunities, and one government-backed lender is sitting at the center of it all: IREDA. 

The state-run non-banking financial company (NBFC), which operates under the Ministry of New and Renewable Energy (MNRE), has built a loan book of more than ₹76,250 crore as of March 2025. But what exactly does IREDA do with all that money?

In simple terms, IREDA finances the companies and projects helping India shift away from fossil fuels. Whether it is a solar park in Rajasthan, a wind farm in Gujarat, or a biomass project in rural India, IREDA provides loans that make these clean energy projects possible.

Where is IREDA Lending the Most?

A large chunk of IREDA’s financing is flowing into solar energy projects, which now account for 25.5% of its total portfolio. Another 24.5% has been lent to state utilities, many of which are upgrading renewable energy infrastructure and transmission networks.

The lender is also increasing exposure to emerging sectors like green hydrogen, offshore wind, and electric mobility as India pushes toward its 2030 clean energy goals.

Why Are Investors Paying Attention to IREDA?

IREDA’s latest earnings show how rapidly demand for green financing is growing.

In the January–March quarter of FY25, the company posted a 49% rise in net profit to ₹502 crore, while revenue climbed 37.7% year-on-year to ₹1,392 crore. Loan sanctions surged 27% to ₹47,453 crore, and disbursements rose 20% to ₹30,168 crore.

The company is also looking overseas for cheaper funding. Recently, IREDA signed a 26-billion Japanese yen loan agreement with the Tokyo branch of State Bank of India. It has also expanded into GIFT City to tap global green finance markets.

Read more: Which Companies Are Owned by Anil Ambani?

Conclusion

IREDA’s growing loan book is more than just a number. It reflects the scale of India’s renewable energy ambitions. As solar, wind, green hydrogen, and electric mobility projects expand across the country, the need for large-scale financing is rising just as quickly.

That is where IREDA fits in. The company is not building power plants itself, but it is funding the businesses that are. With strong profit growth, rising loan disbursements, and access to international green finance, IREDA is steadily positioning itself as one of the key financial engines behind India’s clean energy transition.

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