As per the notification, bonds redeemable after five years and issued by IREDA on or after the notification date will qualify for tax exemption benefits under section 54EC, of the Income Tax Act, 1961, which allows capital gains tax exemption on investments in specified bonds. The proceeds from these bonds will be utilised exclusively for renewable energy projects capable of servicing debt through their project revenues, without dependence on State Governments for debt servicing.

Eligible investors can save tax on Long Term Capital Gain (LTCG) up to Rs. 50 Lakhs by investing in these Bonds in a Financial Year. IREDA will get benefit in terms of lower cost of funds, which is a significant development for the renewable energy sector, in turn to support the expeditious development of RE sector.

Welcoming the notification, Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, said, “We are deeply grateful to the Ministry of Finance, Ministry of New & Renewable Energy and Central Board of Direct Taxes for this valuable policy initiative. This recognition by the Government reinforces IREDA’s pivotal role in accelerating renewable energy financing in the country. The tax-exempt status for our bonds will offer an attractive investment avenue while ensuring increased capital availability for green energy projects, contributing to India’s 500 GW non-fossil fuel capacity target by 2030.”

This move is expected to attract wider participation from investors seeking tax-saving instruments and strengthen the renewable energy financing ecosystem in the country.

Loan sanctions climbed by 29% to ₹11,740 crore in the first quarter of FY 2025-26, compared to ₹9,136 crore in the same period last year. Loan disbursements rose by 31% to ₹6,981 crore, up from ₹5,326 crore in Q1 of FY 2024-25. The company’s outstanding loan book also registered a strong growth, reaching ₹79,960 crore as on June 30, 2025, reflecting a 27% increase over ₹63,207 crore in the corresponding quarter of the previous financial year.

Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, said, “Our first quarter growth underscores IREDA’s crucial role in powering India’s renewable energy ecosystem. The numbers reflect both increasing demand and our readiness to respond with effective financing solutions.”

He acknowledged the consistent support from Hon’ble Union Minister for New & Renewable Energy; Hon’ble Minister of State for New & Renewable Energy; Secretary, MNRE; Board of Directors; and all stakeholders and lauded Team IREDA for its tireless contribution.