IREDA Approves ₹35,800 Cr Borrowing for FY 2025-26 and ₹40,000 Cr Market Borrowing for FY 2026-27

New Delhi, March 19, 2026: In a significant development for the renewable energy financing sector, the Board of Directors of Indian Renewable Energy Development Agency Limited (IREDA) has approved a substantial enhancement to its borrowing plan for the current fiscal year and set an ambitious target for the next.

The decisions were taken during the board meeting held on Thursday, March 19, 2026, and disclosed in a regulatory filing to the National Stock Exchange (NSE) and BSE Limited.

Key Highlights from the Board Meeting

1. Enhancement of FY 2025-26 Borrowing Plan

The board has approved the enhancement of the borrowing plan for the current financial year (FY 2025-26) from up to Rs. 30,800 Crore to up to Rs. 35,800 Crore.

This enhanced borrowing will be raised through a mix of instruments, including:

Taxable Bonds / Sub-ordinated Tier-II Bonds / Perpetual Debt Instruments (PDI)
Term loans from Banks and Financial Institutions (FIs)
Lines of credit from international agencies (multilateral and bilateral)
Short-term loans & Working Capital Demand Loans (WCDL) from Banks
External Commercial Borrowings (ECB)

2. Borrowing Target for FY 2026-27

Looking ahead, IREDA has planned a massive market borrowing programme of up to ₹40,000 Crore for the fiscal year 2026-27. This amount is exclusive of funds raised under Extra Budgetary Resources (EBR).

The diversified fundraising strategy for FY27 includes a wide array of instruments:

Domestic Market: Taxable Bonds, Green Taxable Bonds, Tier-II Bonds, Perpetual Debt Instruments (PDI), Capital Gains Bonds, Commercial Papers, and Term Loans from Banks/FIs.
International Market: Green Masala Bonds, Green Foreign Currency Bonds (USD/EUR/JPY), Foreign Currency Bonds, External Commercial Borrowings (Term Loans & Bonds), syndicated loans, and Foreign Currency Non-Resident (FCNR-B) Loans.
Innovative Instruments: Bond ETFs and other debt securities.

The funds will be raised in one or more tranches/series at appropriate times, depending on market conditions and the company's funding requirements.

3. Policy Modification

The board also approved a modification to the "Policy for Determination of Materiality of Events/Information for Disclosures to Stock Exchanges." The updated policy has been hosted on IREDA's official website at www.ireda.in for public access.

Strategic Implications

This aggressive borrowing plan underscores IREDA's pivotal role in financing India's renewable energy transition. As the government pushes towards its target of 500 GW of non-fossil fuel capacity, IREDA is positioning itself as the primary financial engine to support solar, wind, hydro, and other green energy projects.

Analyst Takeaway:

The enhanced borrowing limit for FY26 and the substantial target for FY27 indicate:

High Credit Demand: A robust pipeline of renewable energy projects seeking funding.
Investor Confidence: IREDA's ability to raise funds through diverse instruments, including green bonds and ECBs, reflects strong market confidence.
Growth Trajectory: The increasing borrowing limits align with IREDA's growth trajectory and its commitment to expanding the renewable energy footprint in India.

Board Meeting Timings:
The meeting commenced at 04:30 PM and concluded at 06:35 PM on March 19, 2026.