IREDA-issued bonds qualify for tax exemption benefits under Section 54EC, allowing capital gains tax exemption on investments in specified bonds.
Proceeds from these bonds will be used solely for renewable energy projects capable of debt servicing through project revenues.
Investors can save tax on long-term capital gains up to ₹50 lakhs per financial year.
This development benefits the renewable energy sector by providing lower cost of funds to IREDA, supporting rapid growth in the renewable energy industry.