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Q100 (IAS/2015) Economy › Industry, Infrastructure & Investment › Development finance institutions Official Key

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It is a Public Limited Government Company. 2. It is a Non-Banking Financial Company. Select the correct answer using the code given below.

Result
Your answer: —  ·  Correct: C
Explanation

IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987[2]. This confirms that both statements in the question are correct.

Regarding Statement 1: IREDA is a Public Limited Government Company[4], and it was incorporated under the administrative control of the MNRE (Ministry of New and Renewable Energy)[5].

Regarding Statement 2: IREDA has been registered as Non-Banking Financial Company (NBFC) with Reserve Bank of India (RBI)[6]. Additionally, it is registered as a non-deposit taking NBFC with the RBI[7].

Since both statements are factually correct as per the official documents, the correct answer is option C - Both 1 and 2.

Sources
  1. [1] https://adeetie.beeindia.gov.in/home/fidetail/ireda
  2. [4] https://adeetie.beeindia.gov.in/home/fidetail/ireda
  3. [6] https://adeetie.beeindia.gov.in/home/fidetail/ireda
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PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 10/10
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This is a classic 'Institutional Anatomy' question. UPSC moves beyond 'what does this body do?' to 'what is its legal DNA?'. It sits at the intersection of Economy (NBFC status) and Environment (Renewable Energy). If an agency lends money, you must check its RBI status.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Is the Indian Renewable Energy Development Agency Limited (IREDA) registered as a public limited company?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987"
Why this source?
  • Directly describes IREDA as a 'Public Limited Government Company'.
  • States establishment context as a non-banking financial institution, linking to its corporate form.
Web source
Presence: 5/5
"IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987"
Why this source?
  • Official IREDA background page explicitly calls it a 'Public Limited Government Company'.
  • Affirms its status and year of establishment, supporting its corporate registration as public limited.
Web source
Presence: 5/5
"The company is a Public Limited Company, domiciled in India and is limited by shares"
Why this source?
  • Corporate filing states the company 'was incorporated in India in the year 1987' and 'The company is a Public Limited Company'.
  • Provides formal corporate identification (CIN) and asserts public limited status in audited disclosures.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > Industrial Finance Corporation of India > p. 182
Strength: 5/5
“Industrial Finance Corporation of India (IFCI) Ltd. was set up in 1948 as Industrial Finance Corporation of India (a Statutory Corporation), through 'The Industrial Finance Corporation of India Act, 1948' to provide medium- and long-term finance to industry. IFCI became a Public Limited Company in 1993 by being registered under the Companies Act, 1956. IFCI is also a Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFC-ND-SI) registered with the RBI. The primary business of IFCI is to provide medium- to long-term financial assistance to the manufacturing, services and infrastructure sectors.”
Why relevant

Gives a concrete pattern: a financial institution (IFCI) became a Public Limited Company by being registered under the Companies Act.

How to extend

A student could check whether IREDA was established/registered under the Companies Act (like IFCI) or under a statute to infer its corporate form.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 22: Renewable Energy > 22.3.6. National Offshore Wind Energy Policy, 2(15: > p. 291
Strength: 4/5
“22.3.6. National Offshore Wind Energy Policy, 2(}15: Under this Policy, the Ministry of New & Renewable Energy (MNRE) has been authorized as the Nodal Ministry for use of offshore areas within the Exclusive Economic Zone (EEZ) of the country and the National Institute of Wind Energy (NfWE) has been authorized as the Nodal Agency for development of offshore wind energy in the country and to carry out allocation of offshore wind energy blocks, coordination and allied functions with related ministries and agencies. It would pave the way for offshore wind energy development, including setting up of offshore wind power projects and research and development activities in waters, in or adjacent to the country up to the seaward distance of 10 nautical miles (Exclusive Economic Zone of the country) from the baseline.”
Why relevant

Shows that government entities in the energy sector are often designated as 'nodal agencies' (roles assigned to ministries/institutes) rather than being companies.

How to extend

A student could test whether IREDA is described as a 'nodal agency' (suggesting a government body) or as a registered company.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 22: Renewable Energy > 22.2.2 International Renewable Energy Agency (IRENA): > p. 289
Strength: 3/5
“22.2.2, Internatilsnal Renewable Energy Agenry (IRENA) :l IRENA has 167 member nations with Headquarters in Abu Dhabi. The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy'”
Why relevant

Differentiates organisational types by example: IRENA is an intergovernmental organisation rather than a corporate entity.

How to extend

Use the contrast: if sources describe IREDA as an intergovernmental/statutory body versus a 'Limited' company, that would point toward/against company registration.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Renewable Energy Certificates (RECs) > p. 432
Strength: 3/5
“• Once a Renewable Power Generator/provider has fed the energy generated into the electricity grid, he receives REC (which can then be sold on the open market as an energy commodity).• RECs are a market-based instrument which certifies that the bearer (holder of REC) owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource.• RECs are proof that energy has been generated from renewable sources such as solar or wind power etc.• When someone purchases RECs, renewable energy is generated on his/her behalf.• RECs can go by many names, including Green tag, Tradable Renewable Certificates (TRCs), Renewable Electricity Certificates, or Renewable Energy Credits.• To provide a fillip to the ambitious renewable energy target, obligations have been imposed on entities like power distribution companies, captive power plants (who establish power plants for their own consumption) and other large electricity consumers to purchase energy from renewable sources.• These obligations called Renewable Purchase Obligations (RPOs) provide for either purchase of renewable energy certificates (RECs) from Indian Energy Exchange (IEX)/ Power Exchange of India (PXIL) OR purchase of renewable power from the National Load Dispatch Centre (NLDC) by obligated entities .• These RPOs are the backbone of India's renewable energy programme.”
Why relevant

Mentions market institutions (IEX/PXIL) and market-based instruments, implying the energy sector has both government agencies and market-registered companies.

How to extend

A student could look at whether IREDA participates in market/financial activities as a corporate entity (registered company) or functions as a government financing agency.

Statement analysis

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Statement analysis

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