With this approval, IREDA has now become the sixth state-run company that can raise funds through such bonds, apart from REC, PFC, NHAI, HUDCO and IRFC.
IREDA has to utilise the funds raised via these bonds only to fund those renewable projects, which can service the debt out of project revenues, without being dependant on their respective state governments to service that debt.
As per the Income Tax Act, investors making capital gains on the sale of immovable property, can invest in 54EC bonds to save on long-term capital gains.
Although these bonds offer a lower rate of interest at 5.25%, investors can benefit from the tax exemption enjoyed by these instruments. Investors can invest up to ₹50 lakh in a financial year in these bonds, which have a lock-in period of five years.
IREDA will also be in focus today as it reports its quarterly results for the April-June period.
Shares of IREDA ended little changed on Wednesday at ₹166.2. The stock is down over 45% from its all-time high of ₹310, and has declined 25% so far in 2025.
