Rs 700 crore for IREDA from Green Masala Bond

Indian Renewable Energy Development Agency (IREDA), the non-banking financial arm of the ministry of new and renewable energy, raised Green Masala Bonds worth Rs 700 crore from the domestic market in March this year, a company official said.

In addition, IREDA also plans to raise $ 350 million Green Masala Bonds at the Singapore stock exchange and the London stock exchange.

Experts say funding in the India renewable energy sector has improved over the past few years and sufficient appetite exists for debt funding of green energy projects in the country. “This is primarily due to stable policy and regulatory regime in the RE sector and the general slowdown in private investment in other sectors. Renewable energy companies are tapping into commercial banks, NBFCs, masala bonds, dollar denominated bonds, multilateral agencies and foreign institutions for their debt requirement

India’s solar power sector saw record low-winning bids of Rs2.97 per kilowatt-hour (kWh) earlier this year to build 750 (MW) plant at Rewa in Madhya Pradesh (MP). The bids were called by Rewa Ultra Mega Power Ltd, a joint venture of Solar Energy Corp. of India Ltd (SECI) and MPUVNL.