Power Sector Lenders see NPAs Surge Even as Piyush Goyal Defends IREDA's Loan Record -Noor Mohammad

-TheWire.in

Growth in bad loans raises questions about due diligence measures followed by renewable energy, power PSUs over last five years.

New Delhi:
Defending the Indian Renewable Energy Development Agency’s (IREDA) grant of a Rs 10.35 crore loan to BJP president Amit Shah’s son, railway minister Piyush Goyal recently stated that the financing agency had lent money to about 2,000 applicants “in the past one year or so”.

While this growth in lending may be commendable, a close look at IREDA’s balance sheets reveals that the state-owned lender’s bad loans more than doubled between March 2013 and March 2016, raising questions about the organisation’s due diligence measures.

IREDA, a dedicated lender to renewable power projects, comes under the administrative control of the Ministry of New and Renewable Energy (MNRE). Goyal held the MNRE portfolio when the IREDA loan was approved to Jay Shah in March 2016.

At the end of March 2013, IREDA’s gross non-performing assets (NPAs) stood at Rs 254.80 crore but jumped to Rs 475.84 crore by the end of March 2015. This figure further increased to Rs 591 crore by the end of March 2016.

IREDA’s gross NPA galloped to 5.34% of its outstanding loans by the end of March 2015 from the low level of 3.86% at the March 2013 and further to 5.71% by the end of March 2016.

At the end of March 2013, IREDA’s gross non-performing assets (NPAs) stood at Rs 254.80 crore but jumped to Rs 475.84 crore by the end of March 2015. This figure further increased to Rs 591 crore by the end of March 2016.

IREDA’s gross NPA galloped to 5.34% of its outstanding loans by the end of March 2015 from the low level of 3.86% at the March 2013 and further to 5.71% by the end of March 2016.

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TheWire.in, 11 October, 2017, https://thewire.in/186335/power-sector-lenders-see-npas-surge-even-piyush-goyal-defends-iredas-loan-record/

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