CBDT Notifies IREDA Bonds as Tax-Saving Option for Green Energy
POWER & RENEWABLE ENERGY

CBDT Notifies IREDA Bonds as Tax-Saving Option for Green Energy

In a significant step to enhance renewable energy financing in India, the Central Board of Direct Taxes (CBDT), operating under the Ministry of Finance, announced that bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) would be classified as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961.

The notification, which took effect on July 9, 2025, enables investors to claim tax exemptions on long-term capital gains by investing in IREDA bonds. As per Section 54EC, individuals can invest up to ₹50 lakh in these bonds within six months of realizing capital gains and receive a full exemption on the taxable amount.

These bonds will carry a lock-in period of five years and will be redeemable thereafter. The funds raised through this mechanism will be exclusively directed toward self-sustaining renewable energy projects that do not require financial support from state governments.

Pradip Kumar Das, Chairman and Managing Director of IREDA, stated that the government’s recognition underscored the agency’s key role in driving renewable energy financing in India. He noted that the tax-exempt status of IREDA bonds would create a more appealing investment channel for individuals while simultaneously increasing capital availability for clean energy initiatives. Das also highlighted that this development aligned with India’s broader objective of reaching 500 GW of non-fossil fuel energy capacity by 2030.

As a public sector enterprise under the Ministry of New and Renewable Energy, IREDA plays a central role in funding sustainable energy projects across the country. The move is expected to attract a wider base of investors, lower borrowing costs, and provide critical momentum to India's clean energy transition, thereby supporting its global climate commitments.
News source: The News Indian Express

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

In a significant step to enhance renewable energy financing in India, the Central Board of Direct Taxes (CBDT), operating under the Ministry of Finance, announced that bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) would be classified as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961.The notification, which took effect on July 9, 2025, enables investors to claim tax exemptions on long-term capital gains by investing in IREDA bonds. As per Section 54EC, individuals can invest up to ₹50 lakh in these bonds within six months of realizing capital gains and receive a full exemption on the taxable amount.These bonds will carry a lock-in period of five years and will be redeemable thereafter. The funds raised through this mechanism will be exclusively directed toward self-sustaining renewable energy projects that do not require financial support from state governments.Pradip Kumar Das, Chairman and Managing Director of IREDA, stated that the government’s recognition underscored the agency’s key role in driving renewable energy financing in India. He noted that the tax-exempt status of IREDA bonds would create a more appealing investment channel for individuals while simultaneously increasing capital availability for clean energy initiatives. Das also highlighted that this development aligned with India’s broader objective of reaching 500 GW of non-fossil fuel energy capacity by 2030.As a public sector enterprise under the Ministry of New and Renewable Energy, IREDA plays a central role in funding sustainable energy projects across the country. The move is expected to attract a wider base of investors, lower borrowing costs, and provide critical momentum to India's clean energy transition, thereby supporting its global climate commitments.News source: The News Indian Express

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?