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

15 Jul 2025 CW Team

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

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..