On 24th February 2023, Pradip Kumar Das, the Managing Director and Chairman of the Indian Renewable Energy Development Agency (IREDA), announced to open an overseas office in the new emerging financial hub, Gujarat’s GIFT City, to fund upcoming renewable energy projects in foreign currencies.
The chairman and MD also stated that the decision to open an overseas office at GIFT City is to avoid cost evasion while exchanging foreign currencies. The chairperson made the statement during a panel discussion at one of the G20 events held at the Ministry of New and Renewable Energy (MNRE) on the 23rd of February 2023, called “Scaling up Clean Energy Investment in Emerging Economies.”
Pradip Kumar Das also added a statement explaining the importance of “Green Taxonomy” and raising an estimated amount of ₹25 lakh crores to finance green/renewable energy projects by 2030.
The IREDA chairman and MD also suggested an initiatory point to this revolutionary green taxonomy that insurance and superannuation funds should mandate an investment of 2% of their firm assets under the green bonds and help finance renewable energy projects.
As a result of this foresighted initiative with proper monitoring, IREDA was able to reduce its NPAs from 7.18% to 2.03% during the time span of the past three years.
Impact of IREDA’s Overseas Office at GIFT City
Gujarat’s GIFT City has surely emerged as India’s first operational smart city and a global financial hub, attracting both domestic and international companies from different industrial sectors like banking, educational, financial, etc. IREDA’s decision to establish its overseas office in this prestigious financial zone is expected to open up new opportunities for funding green/renewable energy projects in India and strengthen India’s position as a global player in the green/renewable sector.
The inauguration of IREDA’s overseas office in GIFT City is estimated to serve multiple purposes. Firstly, it will provide international investors and organizations with a platform to explore the government’s strong focus on sustainability and renewable energy. There is a plethora of projects that can benefit from foreign investments and expertise.
Indian Renewable Energy Development Agency (IREDA), a non-banking financial institution under the Ministry of New and Renewable Energy (MNRE), has been playing a significant role in funding and promoting green energy projects across the country. The organization provides various financial assistance schemes like term loans, bridge loans, and takeout finance for renewable energy projects, including solar, wind, hydro and biomass.
The opening of the overseas office will further enhance IREDA's capabilities in attracting foreign funds and strategic partnerships. International investors will have easier access to information about Indian green/renewable energy projects and the transparent financing options provided by IREDA. This streamlined approach is expected to boost confidence in potential investors and accelerate the country's renewable energy infrastructure deployment.
Final Words
Real estate consultants at RES Management commented that IREDA's move to establish an overseas office in GIFT City is a game-changer for the renewable energy sector. It will help attract foreign investments and cutting-edge technologies, propelling India towards a sustainable and green future.
The establishment of IREDA’s overseas office anticipates a surge in demand for office for sale in GIFT City due to IREDA's presence. Many international organizations and financial institutions are looking to invest in renewable energy projects and are expected to establish offices in the same vicinity for better collaboration and ease of business.
As we said previously, 2023 is a great time to invest in commercial properties in Gujarat’s GIFT City. Get in touch with us and find your ideal investment property to seize the lifetime investment opportunity.
