Indian Renewable Energy Development Agency Limited (IREDA) was on 2 June 2015 awarded the Miniratna (Cateogry -1) status by the Department of Public Enterprises under the Union Ministry of Heavy Industry and Public Enterprises.
The proposal for conferring Miniratna status for IREDA was recommended by the Union Ministry of New and Renewable Energy (MNRE).
Grant of status allows IREDA to make capital expenditure on new projects, modernization, purchase of equipment, etc. without Government approval up to 500 crores rupees, or equal to their net worth, whichever is lower.
For IREDA, now the ceiling on equity investment to establish joint ventures and subsidiaries in India will be 15% of its net worth in one project limited to 500 crore rupees. The overall ceiling on such investment in all projects put together shall be 30% of the net worth IREDA.
The Scheme of Maharatna/Navratna/Miniratna
The scheme of awarding Navratna, Miniratna (Category-1 and 2) status to public sector undertakings (PSUs) was started by the Union Government vide a notification dated 22 July 1997 so as to grant greater autonomy to PSUs to become global giants.
Later on 4 February 2010, the scheme of Maharatna for PSUs was started.
At present, there are 55 Public Limited Companies in Mini Ratna (Cateogry -1) and 17 are in Mini Ratna (Cateogry-2). Besides, there are 7 Maharatna Companies and 17 Navratnas companies.
Eligibility for Miniratna Category-I PSEs
They should have made profit in the last three years continuously, the pre-tax profit should have been 30 crores rupees or more in at least one of the three years and should have a positive net worth.
IREDA was established as Public Limited Government Company in 1987 to promote, develop and extend financial assistance for renewable energy and energy efficiency /conservation projects with the Motto Energy for Ever.
It was created as Non-Banking Financial Institution (NBFI) in Schedule C of the Reserve Bank of India (RBI) and was upgraded as Schedule B in 2010.
The Chairman and Managing Director (CMD) of IREDA is KS Popli.
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When: 2 June 2015