IREDA raises FY26 borrowing cap, sets Rs 40,000 crore FY27 plan

Indian Renewable Energy Development Agency Limited (IREDA) has increased its borrowing limit for FY2025-26 and approved a higher market borrowing programme for FY2026-27, indicating rising financing demand from India’s renewable energy sector.

At its board meeting on March 19, 2026, IREDA approved a revision to its FY2025-26 borrowing plan, increasing it from Rs 30,800 crore to Rs 35,800 crore, an increase of Rs 5,000 crore. The late-stage revision, with limited time remaining in the financial year, points to stronger-than-expected disbursement requirements from renewable energy developers.

For FY2026-27, the board approved a market borrowing programme of up to Rs 40,000 crore, excluding Extra Budgetary Resources (EBR). The borrowing mix includes taxable bonds and green taxable bonds, subordinated Tier-II bonds, perpetual debt instruments, Green Masala Bonds, foreign currency bonds in USD, EUR, and JPY, bond exchange-traded funds (ETFs), external commercial borrowings (ECBs), Foreign Currency Non-Resident Bank (FCNR-B) loans, syndicated and subordinated foreign currency loans, commercial papers, and short-term bank facilities.

Funding strategy and policy update

The range of instruments and currencies provides flexibility to manage borrowing costs in line with market conditions. The FY2026-27 target represents an increase over the revised FY2025-26 ceiling and reflects IREDA’s expanding role in financing utility-scale solar, wind, and hybrid renewable projects.

The board also approved a revision to IREDA’s internal policy for determining materiality of events for stock exchange disclosures.