IREDA defers issue of tax-free bonds

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Indian Renewable Energy Development Agency (IREDA) has deferred issuance of tax-free bonds till end of this month. IREDA plans to raise Rs 600 crore through private placement of the bonds.

The state-run agency had previously planned to raise the sum by September 10.

But it had to alter the plan following a delay in getting credit rating in time.

Government of India had approved the proposal to raise Rs5,000 crore by means of tax-free bonds to support and sustain solar initiatives. IREDA was assigned to raise Rs 2,000 crore according to the proposal.

The agency is to use the fund to sanction soft loans at the rate of about 10.5 per cent to developers of rooftop solar projects as part of developing the country’s distributed solar capacity.

Ajith Kumar S