Regarding the IREDA's new subsidiary in GIFT City, consider the following statements:

A) The subsidiary was incorporated after approval from the RBI.

B) The move is expected to enhance India's global competitiveness in renewable energy.

C) The subsidiary is primarily focused on domestic financing.

Which of the statements above are correct?

Solution

Statement C is incorrect because the subsidiary serves as an offshore platform for global funding, not just domestic. • The Indian Renewable Energy Development Agency Ltd. (IREDA) has launched a new subsidiary, "IREDA Global Green Energy Finance IFSC Limited", in the International Financial Services Centre (IFSC) at GIFT City, Gujarat. • The subsidiary was incorporated on 7th May 2024, following approval from the Reserve Bank of India on 8th February 2024. • This move marks a significant step in utilizing innovative green financing techniques and expanding IREDA’s global reach. • The subsidiary serves as an offshore platform for obtaining competitive funding, crucial for supporting the growth of the renewable energy sector and achieving India's 'Panchamrit' targets for energy sustainability. • The establishment of IREDA in IFSC is expected to open new business opportunities and set a global footprint in the renewable energy market. • This strategic initiative is aimed at enhancing access to innovative financing options and fostering partnerships with international investors to promote renewable energy projects both in India and internationally. Learn Along: About IREDA • IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987. • IREDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as Non-Banking Financial Company (NBFC) with Reserve Bank of India (RBI). • Chairman and Managing Director: Pradip Kumar Das                  Headquarters: New Delhi, India