IREDA shares in focus: RBI denies company’s proposal for equity investment in power project
In addition to having the right to designate one director for the JV company's board, IREDA was expected to invest approximately Rs 174.22 crore in the venture, or 5% of the total.
IREDA shares in focus, RBI denies company proposal for equity investment in power project
On Monday, March 10, investors will be watching shares of the state-run Indian Renewable Energy Development Agency (IREDA) Ltd. after the company told the market about a letter it received from the Reserve Bank of India (RBI).
In its exchange filing, IREDA said that the company's request for an equity investment to build and execute a 900 MW Upper Karnali Hydro Electric Power Project in Nepal has not been approved by the RBI.
The Upper Karnali Hydroelectric Power Project is a joint venture between IREDA, GMR Energy, GMR Power & Urban Infra, GMR Lion Energy, NEPAL Electricity Authority, and another state-run company, SJVN Ltd. The JV agreement was signed earlier this year.
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In addition to having the right to designate one director for the JV company's board, IREDA was expected to invest approximately Rs 174.22 crore in the venture, or 5% of the total.
The aforementioned investment was approved by the Department of Investment and Public Asset Management (DIPAM) in January of this year. This investment was initially approved by the IREDA board in July last year. The company stated it would present its case for the investment again before the central bank.
Ireda shares are currently trading lower by 1.60% at Rs 147.11. The stock has declined more than 50% from its peak of Rs 310 last year and has also recently entered the Futures & Options (F&O) space.
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