The main objective of IREDA is to provide financial support/loans to specific projects and schemes for generating electricity and/or energy through new and renewable sources and energy efficiency and conservation.
Functions Involved in Loan Sanction and Recovery of Loan
01
Receipt of Loan Application / Registration
- Loan Application to IREDA is required to be submitted in prescribed form along with applicable non-refundable registration fee.
- The details of clearances / documents required for consideration of loan sanction are specified in the application form.
- The application form is available free of cost and may also be downloaded from IREDA's website.
- IREDA conveys the Application Receipt Number on receipt of application.
- IREDA seeks additional details, if required for enabling registration of the application.
- IREDA conveys registration number when all essential documents are made available by the applicant as per the registration checklist and after approval of Competent Authority for registering the project.
- Loan application submitted to IREDA remains valid for a period of 6 months.
- Applicant may be asked for making presentation if required.
02
Project Appraisal
- IREDA may ask for additional clarifications, if required during appraisal of the project.
- Pre-sanction inspection of project site is carried out by IREDA officials in case of grid connected power projects.
03
Sanction of Project
- Normally, IREDA sanctions a project within 90 days of registration, if complete details / documents are submitted by the applicant and the project is found eligible from technical, financial and legal point of view.
04
Signing of Loan Agreement
- On loan sanction, IREDA issues loan sanction letter to the applicant which has a validity of six months from the date of issue.
- Applicant is required to pay applicable non-refundable front-end fee upon intimation of sanction / signing of loan agreement as required.
- Borrower is required to sign loan agreement within the validity of the sanction letter i.e. 6 months. Extensions can, however, be granted for another 9 months on applicable conditions.
05
Security Creation and Disbursement of Loan
- After signing loan agreement, the borrower is required to comply with necessary security conditions stipulated for loan sanction.
- Disbursement (Interim/Regular) shall be made as per the disbursement guidelines. Sample formats pertaining to various stages of disbursement can be downloaded from this website.
- IREDA normally disburses loan in proportion to promoter's contribution / or as per conditions of loan sanction.
06
Project Monitoring
- IREDA makes site inspection before disbursement of loan to the project.
- IREDA appoints Nominee Director, Concurrent Engineer / Concurrent Auditor and conducts review meetings for monitoring the project.
- The borrower is required to send monthly / quarterly progress report of the project to IREDA and project completion report on commissioning of the project.
- The borrower is required to send monthly post commissioning generation details to IREDA.
07
Recovery of Loan
- The borrower is required to remit interest and principal dues as per the monthly / quarterly schedule applicable to them.
- In case of default, IREDA is liable to take necessary legal proceedings against the borrower as per the loan covenants.