With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? Select the correct answer using the code given below.

Answer: (c) Both 1 and 2

IREDA is a public limited government company and an NBFC under MNRE.

Statement by statement

1. ✓ CORRECT IREDA (1987) is a public limited government company (now listed).

2. ✓ CORRECT It is registered with the RBI as a non-banking financial company.

The idea

The two statements describe two different things about the same body. “Public limited government company” is its legal form: a company in which the government holds the majority. “Non-banking financial company” is its business: it lends money but is not a bank. One body can be both.

Renewable project needs a long-term loan → Banks see it as risky → IREDA lends → Project is built → Loan is repaid from power sales

Elimination technique

Both statements are plain descriptions with no absolute word and no surprising claim. Plain statements of this kind are usually true in Environment PYQs.

Also know

IREDA was set up in 1987 under the Ministry of New and Renewable Energy with the motto “Energy for Ever”. Its shares were listed on the stock exchanges in 2023 and it got Navratna status in 2024. A non-banking financial company cannot accept demand deposits and is regulated by the RBI.