In his presentation at the session on 'Co-generation of Power', KS Sridharan, general manager of the company said IREDA provides financial assistance to around 20 various type of projects based on the new and renewable non-conventional energy sources. The agency has sanctioned around Rs 2,000 crore for these projects and about 50 per cent of this amount has already been disbursed, he said. The financing criteria, however, depends on the type of projects. For instance, limit of the financial assistance, interest rates vary for the project based on different fuel.

IREDA has number of scheme to assist these projects such as equipment finance scheme/intermediary scheme and package for solar photovoltaics water pumping programme. The financial institutionalso provides loans to state electricity board.

It also offers consessions in landing norms for setting up projects in North Eastern states, hilly areas, islands and deserts areas, said Sridharan. All the projects under these catagory will get two per cent consession in interest rate. Besides, an additional 0.50 per cent rebate on interest rate is offered to entrepreneurs belonging to scheduled class, scheduled tribes and women enterpreneurs setting up projects in these areas.

These projects are also exempted from paying initial processing and development charges, inspection fees, legal charges, expenditure incurred on nominee directors and one per cent front-end fee. Any company or cooperative which has no accumulated losses on the date of applying for the loan, and has made profit during the previous year is eligible for financial assistance. Any company which has arrears payable to IREDA is not eligible for the assistance.