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IREDA

Decision Making Process & Channel of Supervisors

rti

Decision Making Process & Channel of Supervisors

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
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.
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
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.
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.
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.
Project Monitoring
  • IREDA makes site inspection before disbursement of loan to the project.
  • IREDA appoints Nominee Director, Concurrent Engineer/Concurrent Auditor, conduct 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.
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.
 
Last Updated on 14/02/2023
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