(THE GIST OF PIB) Indian Renewable Energy Development Agency (IREDA)

(March-2023)

IREDA is planning to establish an office in Gujarat’s GIFT City to finance Renewable Energy projects in foreign currency.

Nodal Ministry: The Ministry of New and Renewable Energy (MNRE).
It was set up as a specialized non-banking finance agency for the renewable energy sector.
IREDA plays a key role in renewable energy project financing which gives confidence to the financial institutions/banks to lend in the sector.

The Gujarat International Finance Tec-City (GIFT City) is India’s first and only International Financial Services Centre (IFSC) where banks, stock exchanges and financial services firms have set up their global operations.
It consists of a multi-service Special Economic Zone (SEZ), which houses India’s first International Financial Services Centre (IFSC) and an exclusive Domestic Tariff Area (DTA).

It is a statutory authority established under the International Financial Services Centres Authority Act, 2019.
Mandate: To develop and regulate the financial products, financial services, and financial institutions in the International Financial Services Centres (‘IFSC’).
Before the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.
GIFT-IFSC is the maiden IFSC in India.
The International Financial Services Centres Authority consists of nine members, appointed by the central government.
Term: All members of the IFSC Authority will have a term of three years, subject to reappointment