UPSC Prelims 2015 · Question 100 of 98
UPSC Prelims 2015 question on IREDA Renewable Energy Agency
- ExamUPSC CSE
- Year2015
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicIndustry
- DifficultyHard
- TypeStatement
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.
Show answer
Answer: C. Both 1 and 2
Verdict
The answer is both 1 and 2. IREDA is a public limited government company and a non banking financial company.
Analysis
The Indian Renewable Energy Development Agency Limited was established in 1987 as a public limited government company under the administrative control of the Ministry of New and Renewable Energy, and it is registered as a non banking financial institution. Its function is to promote, develop and extend financial assistance to renewable energy and energy efficiency and conservation projects. The two statements describe its corporate form and its financial classification respectively, and both are accurate, so the combined option is correct.
Source
IREDA official material, with reporting on green bonds.
How to crack it
A specialised lender created by a ministry is almost always structured as a government company registered as a non banking financial company, because it lends without taking deposits, and that structural pattern lets you reason through the question without institutional recall. Apply the same template to bodies such as PFC, REC and NABARD, checking whether each takes deposits, since that is what separates a bank from an NBFC. The news hooks were IREDA's green bond issuance and its Miniratna status.