UPSC Prelims 2015 Q100: Indian Economy – Banking & Financial Sector
With reference to the Indian Renewable Energy Development Agency Limited (IREDA),
which of the following statements is/are correct?
1. It is a Public Limited Government Company.
2. It is a Non - Banking Financial Company.
Select the correct answer
using the code given below.
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (c) Both 1 and 2
Explanation
Indian Renewable Energy Development Agency Limited (IREDA)
Set up in 1987 under the Ministry of New and Renewable Energy.
Its motto is 'Energy for Ever'.
| Statement | Verdict | Fact |
|---|---|---|
| 1. It is a Public Limited Government Company | Correct | A Government of India enterprise |
| 2. It is a Non-Banking Financial Company | Correct | Registered with the RBI as an NBFC |
What IREDA does:
| Work | Detail |
|---|---|
| Lends to | Solar, wind, hydro, biomass and energy-efficiency projects |
| Raises funds by | Bonds, loans from banks and international agencies |
| Status | Listed on stock exchanges in 2023; Navratna in 2024 |
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also true: IREDA is a Non-Banking Financial Company.
- (b) Incorrect. Statement 1 is also true: it is a Public Limited Government Company.
- (c) CORRECT. IREDA is a Government company and a Non-Banking Financial Company.
- (d) Incorrect. Both statements about IREDA are true.
Key point
IREDA (1987, under MNRE): Public Limited Government Company and NBFC that finances renewable energy; motto 'Energy for Ever'.
Remember
IREDA = Government NBFC for renewable energy.
Common mistakes
- Thinking IREDA is a regulator or a research body.
- Assuming a Government company cannot be an NBFC.
- Confusing IREDA with SECI, which runs solar auctions.
Exam tip
IREDA lends; SECI auctions; MNRE makes policy.
Sources
- Indian Renewable Energy Development Agency Limited — About IREDA
- Ministry of New and Renewable Energy — Organisations under MNRE