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Indian Renewable Energy Development Agency Limited
A Government of India Enterprise
ISO 9001:2015, 27001:2022 Certified
FAQ's
FAQ's
| Q1. | Can wind farm be installed anywhere in India? |
| Ans. | In India, windfarms can be established at MNRE/ NIWE/ State Nodal Agency identified potential sites or at sites identified by private developers duly certified by NIWE. |
| Q2. | Is permission required for setting up wind energy projects? |
| Ans. | Projects are required to obtain approval from Central and State Government as the case may be for setting up the project |
| Q3. | Does IREDA provide loan assistance for setting up wind energy project? |
| Ans. | Depending upon the technical and financial viability of the project, IREDA may finance the project for green field/ commissioned project as per IREDA’s Financing norms. |
| Q4. | Is subsidy available for setting up wind projects? |
| Ans. | For detailed information on Interest Rate and incentive, kindly refer IREDA's Financing Norms and refer IREDA Website https://www.ireda.in. IREDA is a financial institution and does not provide any subsidy. For details of Government support/incentives/policy/subsidy available if any, please contact MNRE and refer MNRE website at https://mnre.gov.in/. |
| Q5. | Does IREDA finance Wind projects involving second hand turbines? |
| Ans. | IREDA does not finance greenfield projects involving second hand equipment and machinery. |
| Q6. | What securities are obtained by IREDA for financing Wind Farm Project or Wind Equipment? |
| Ans. | IREDA normally obtains charge on project assets and revenue stream of project as securities. However additional securities are also obtained based on risk perception and as per financing norms. |
| Q7. | What is moratorium period provided in Wind Sector? |
| Ans. | Moratorium / grace period is the period during which borrower repays only interest on loan availed and maximum moratorium / grace period available for Wind projects financing is up to 18 months from the date of SCOD / COD of the project, whichever is earlier. |
| Q8. | What is IREDA loan period? |
| Ans. | The repayment periods shall be maximum up to 25 years, depending on the project cash flows, DSCR of the projects etc., and it shall be after the construction & moratorium, with a condition that IREDA shall have the right to cell option after 15 years of repayment. However, total loan to be amortized within 85 % of the balance useful life period as per CERC. |
| Q9. | Can Individuals apply for loan to IREDA for setting up a Wind farm Project? |
| Ans. | Yes, if security of Bank Guarantee/ Pledge of FDR from a Scheduled Commercial Bank is provided. |
| Q10. | Which turbines are eligible for IREDA’s loan assistance? |
| Ans. | Machine types eligible (Wind Electric Generator - WEG) for financing wind projects will be as per Revised List of Models and Manufacturers (RLMM) of Wind Turbines issued by NIWE (National Institute of Wind Energy). |
| Q1. | What is the sectoral eligibility for availing loan? |
| Ans. |
Biomass Power: |
| Q2. | Is DPR required to be prepared by a reputed consultant? |
| Ans. |
Yes, Consultants, who are involving in the power sector, are preferred. |
| Q3. | What are the appraisal requirements? |
| Ans. | Project should have been registered with IREDA. Detailed project report along with cost estimates and other relevant information & clarifications as requested by IREDA should have been submitted / clarified. |
| Q4. | What are the eligibility requirements for availing loan? |
| Ans. |
For Eligibility Requirements please refer to the General Eligibility Conditions of IREDA’s Financial Guidelines. |
| Q5. |
What is the Security that is required to be furnished? |
| Ans. |
For Security Requirements please refer to Security (Project Financing Scheme) of IREDA’s Financial Guidelines. |
| Q6. |
How much time does it take for the loan to get sanctioned? |
| Ans. |
Normally, IREDA sanctions a project within 90 days of registration of the same, provided complete details / papers are submitted by the applicant and the project is found viable from technical, financial and legal point of view. |
| Q1. | Whether any power project using Municipal Solid Wastes funded by IREDA is in operation in India ? |
| Ans. | Four project with the cummulative capcity of approx 30 MW are in operation in diffrent part or India. |
| Q2. | What are the successful technologies available in India for generation of power from MSW wastes ? |
| Ans. |
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| Q3. | What are the wastes eligible under the Industrial sector ? |
| Ans. | Any Bio-waste from Industrial sector (excluding Rice husk, bagasse, straw, stalks) are eligible under the sector |
| Q4. | Whether mixing of coal with industrial wastes is allowed for power generation ? |
| Ans. | No, However, mixing of other biomass wastes up to 25% with industrial wastes is allowed for power generation |
| Q5. | Whether any Municipal Solid Waste power project using pyrolysis technology is existing in India ? |
| Ans. | No. |
| Q1. | What are Bio-fuels? |
| Ans. | Bio-fuels are renewable liquid fuels derived from biological materials by a number of chemical / biological processes. |
| Q2. | What are the advantages of Bio-fuels? |
| Ans. |
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| Q3. | Which are the potential Bio-fuels being financed by IREDA? |
| Ans. |
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| Q4. | What are the raw materials used for production of Bio-fuels? |
| Ans. |
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| Q5. | Has IREDA financed any Bio-fuels projects so far? |
| Ans. | Yes, IREDA has already financed some ethanol projects. |
| Q6. | What is difference between Bio-Ethanol and Ethanol? |
| Ans. | Ethanol and bioethanol are chemically exactly the same - a simple alcohol. However, the different names refer to the way they are produced. Ethanol is the name of the substance itself, however it is made, whereas bioethanol refers to a fuel produced by a process of fermentation of a biomass containing sugars, which can be anything from sugar cane and other food crops, to wood chips, waste straw, or sawdust, and distilling the ethanol from it. |
| Q7. | What are the advantages of Bio-Ethanol? |
| Ans. |
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| Q 8. | Is there any categorization in Bio-Ethanol projects? |
| Ans. | Bioethanol projects are categorised as first (1G), second (2G) and third-generation (3G), based on the source of raw material used for bioethanol production. Raw materials for 1G bioethanol synthesis are sugar containing materials (like sugar cane juice, molasses, sugar beet etc.) and starch containing materials(such as corn, cassava, rotten vegetables such as potatoes, damaged food grain etc.). 2G bioethanol can be produced using inedible farm waste left over after harvest like Corn cobs, rice husks, wheat straw and sugarcane bagasse etc. Algae grown in wastewater, sewage or salt water can be used to produce 3G bioethanol. |
| Q 9. | What is Ethanol Blending programme? |
| Ans. | The Ethanol Blending Programme (EBP) seeks to achieve blending of Ethanol with motor sprit with a view to reducing pollution, conserve foreign exchange and increase value addition in the sugar industry enabling them to clear cane price arrears of farmers. The Central Government has scaled up blending targets from 10% to 20% by 2025. |
| Q 10 | Is subsidy/incentives available for setting up Bio-Ethanol projects? |
| Ans. | The government is extending financial assistance in the form of interest subvention at 6 per cent per annum or 50 per cent of rate of interest charged by banks, whichever is lower, on the loans to be extended by banks for five years, including one-year moratorium, for 1G ethanol projects. The said subvention is being extended through Department of Food & Public Distribution and may be referred for detailed terms and conditions. |
| Q 11 | Has IREDA financed any Bio-Ethanol projects so far? |
| Ans. | IREDA till date has financed many First-generation (1G) Bio-Ethanol projects, both from sugar containing materials and starch containing materials located in different parts of the country. |
| Q 12 | How much is the IREDA loan quantum? |
| Ans. | It varies from project to project and risk perception. However, IREDA loan quantum goes upto 95% of the appraised project cost. |
| Q 13 | What is IREDA loan period? |
| Ans. | The repayment periods shall be maximum upto 7 years including moratorium/ grace period, depending on the projcect cash flows, DSCR of the projects etc., and it shall be after the construction. In case of consortium/ co-financing, terms and conditions can be aligned with lead FI/ Banks/Underwriters/ Syndicators. |
| Q 14 | What is moratorium period and its duration? |
| Ans. | Moratorium / grace period is the period during which borrower repays only interest on loan availed. The maximum moratorium / grace period available for Biofuels projects financing is upto one year. |
| Q 15 | What securities are obtained by IREDA for financing Biofuel projects? |
| Ans. | IREDA primarily obtains charge on project assets and revenue stream of project as securities. However, One or more additional securities such as Collateral security equivalent to 10% of the loan amount, Corporate and/or Personal Guarantees, Pledge of shares (minimum 51%) of the applicant company, 3rd party Guarantee, Deposit of PDCs / NACH, Demand Promissory Note, BG/FDR for not less than 10% of loan etc., are also obtained based on risk perception and as per financing norms. |
| Q1. | What is energy efficiency? |
| Ans. | When the specific energy consumption (units of energy consumed per unit of output) of a device or equipment is improved by changing the technology deployed, it is termed as improving the energy efficiency. For example, if we change the incandescent lamp by a Compact Fluorescent Lamp (CFL), it will result in same illumination level with less power consumption. Thus, this is a case of improving energy efficiency. |
| Q2. | What is Energy Conservation? |
| Ans. | In case of energy conservation, the main technology of the device or equipment remain unchanged however energy wastage is minimised by plugging the unproductive use of energy. This will also result in improving overall energy efficiency of the system. For example, we take the same case of incandescent lamp but incorporate the movement sensor or dusk to dawn timer to regulate the use of light only when it is required, it will result in conservation of energy. |
| Q3. | What is Demand Side Management? |
| Ans. | The energy efficiency/ conservation measure can be applied at Supply Side (viz. at the point of generation of power) as well as at Demand Side (viz. at the point where the energy is consumed). However, in view of various transmission/ distribution losses involved till the energy reaches to end user, it has been found that the Demand Side Management (DSM) is more effective than the Supply Side Management. DSM initiatives are also helpful in flatten the demand curve of utilities and thus reducing the need for peak power generators. |
| Q4. | What are Energy Service Companies (ESCOs)? |
| Ans. | A company that offers to reduce a client's energy costs, often with the cost savings being split with the client through an energy performance contract (EPC) or a shared-savings agreement. |
| Q5. | What are the types of energy efficiency measures? |
| Ans. | a) Active or efficient in-house management of energy efficiency through maintenance and housekeeping measures involves no or only very minimal investments. b) Replacement/Retrofit of selected equipment, which may require medium-size investments can be taken up; and c) The third and final type may be the Process Revamping or modification of entire manufacturing processes, which may require large-scale investments. |
| Q6. | What types of Projects IREDA can finance? |
| Ans. | IREDA finances the end user energy efficiency retrofit projects, DSM Projects taken up by utilities, projects promoted by Energy Service Companies (ESCOs) and power plants based on recovery of energy from exhaust gasses. IREDA also extend line of credits to financial intermediaries to onlend/ lease the energy saving equipment. |
| Q7. | Has IREDA identified any specific energy efficiency measures for financing? |
| Ans. | No. Any other equipment/ device/ system, which contributes to energy saving shall be considered by IREDA for financing. |
| Q8. | Whether energy audit is must for availing loan from IREDA? |
| Ans. | Yes (Except for the cases where established energy saving items such as LED lamps etc. are being proposed.) |
| Q9. | Whether IREDA accredit energy auditors for this purpose? |
| Ans. | No. However, it is always better to employ the energy auditors accredited by other agencies such as Bureau of Energy Efficiency, PCRA etc. |
| Q10. | Whether IREDA finances only renewable energy based energy saving measures? |
| Ans. | No. Energy saving measures in plants based on both fossil fuels as well as renewable fuels are eligible for eligible for IREDA financing. |
| Q1. | What is IREDA’s Project Financing Scheme for Solar energy sector? |
| Ans. | Depending upon the technical and financial viability of the project, IREDA may finance up to 75% of the cost of the solar project for greenfield project and up to 80% of project cost for commission project subject to fulfilment of certain conditions. Please refer IREDA Financing norms |
| Q2. | What are the terms of financing solar energy projects including interest rate, repayment period and security? |
| Ans. | For details w.r.t the terms, please refer to IREDA Financing Guidelines available (click here ) |
| Q3. | What documents are required to be submitted for availing loan from IREDA? |
| Ans. | Application formats are available on the website of IREDA. The forms contains an Indicative list of documents which are required to be submitted along with the application forms. IREDA may ask for additional documents/information if required, for analysis of the proposal. |
| Q4. | Does IREDA Finance Solar roof-top and Solar thermal projects? |
| Ans. | For information, kindly refer to roof-top and sholar thermal schemes available on our website. |
| Q5. | Where in India can solar energy projects be installed? |
| Ans. | Solar energy projects can be installed anywhere in India. However, as different regions have different intensity of solar radiation, the output power from the solar project may vary from region to region. |
| Q6. | Is there any MNRE subsidy available for setting up solar projects under IREDA’s finance? |
| Ans. | For detailed information on Interest Rate and incentive, kindly refer IREDA's Financing Norms and refer IREDA Website https://www.ireda.in. IREDA is a financial institution and does not provide any subsidy. For details of Government support/incentives/policy/subsidy available if any, please contact MNRE and refer MNRE website at https://mnre.gov.in/. |
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Q1. |
What is Small Hydro Project? |
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Ans. |
A Small Hydro Project (SHP) is the development of hydroelectric power which harnesses energy from flowing or falling water from rivers, rivulets, artificially created storage dams or canal drops for generation of electricity. The capacity of SHP is upto 25 MW. |
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Q2. |
Which are large hydro projects? |
|
Ans. |
Project capacity >25MW are termed as Large Hydro Project |
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Q3. |
In India where can the Hydro project can be installed? |
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Ans. |
The estimated potential of 21135.37 MW from 7135 sites for power generation in the country from small/mini hydel project is assessed by the Alternate Hydro Energy Centre (AHEC) of IIT Roorkee in its Small Hydro Data base of July 2016. The hilly States of India mainly Arunachal Pradesh, Himachal Pradesh, Jammu & Kashmir and Uttarkhand and constitute around half of this potential. Other potential States are Maharashtra, Chattisgarh, Karnataka and Kerala. Apaart from the small hydro projects, India has a potential of large hydro capacity of 1,45,320 MW. The statewise location of identified SHP sites are given on MNRE website. |
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Q4. |
What is the applicable rate of interest for the hydro project? |
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Ans. |
The applicable rate of interest for hydro projects varies based on internal credit rating (from Grade-I to Grade-V). For details, visit the website www.ireda.in |
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Q5. |
Does IREDA provide finance to takeover hydro project? |
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Ans. |
Yes, IREDA provides financing to takeover hydro projects as per IREDA’s financing guidelines, risk perception nature of industry and background of each case. |
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Q6. |
Is there any MNRE subsidy available for setting up small Hydro Projects? |
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Ans. |
For details of subsidy available if any, please contact MNRE |
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Q7. |
What is a Moratorium Period and what is the maximum moratorium period available in Hydro Sector? |
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Ans. |
The moratorium period would be upto 6 months to 1.5 years from the date of COD of the project. |
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Q8. |
Does IREDA provide finance large hydro projects? |
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Ans. |
Yes, IREDA provides finance for large hydro projects under consortium financing and the loan amount is up to 50% of the total project cost depending upon the viability of the projects, as per the financing guidelines of IREDA. |
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Q9. |
What is the maximum repayment period available in Hydro Sector? |
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Ans. |
The repayment period shall be maximum upto 25 years or within 85% of the balance useful life period as per CERC. |
Last Updated on 12/10/2023
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