IREDA Share Price Ends 2-Day Gaining Streak; RBI Rejects Equity Investment in Nepal Hydro Project

Indian Renewable Energy Development Agency Limited (IREDA) share price saw a decline in its share price, falling 1.24% (-1.86 points) to ₹147.73 at 9:35 AM on the NSE from its previous close of ₹149.59. The stock opened at ₹149.17, hitting an intraday high of ₹150.50 and a low of ₹147.20. This drop comes after IREDA gained over 3% in the last two trading sessions.

IREDA’s Equity Investment Request Declined by RBI

The Indian Renewable Energy Development Agency Limited (IREDA) recently faced a setback in its plans to invest in Nepal’s 900 MW Upper Karnali Hydro Electric Power Project.

The Reserve Bank of India (RBI), through a letter dated March 7, 2025, declined the company’s request for equity investment in the project. However, IREDA remains committed to the initiative and intends to appeal the decision once again, the company said in a press release on the stock exchanges.

IREDA’s Initial Approval for Investment in Nepal’s Hydro Project

In July 2024, IREDA’s board granted in-principle approval to invest up to 10% equity in GMR Upper Karnali Hydro Power Limited, Nepal, and Karnali Transmission Company Pvt. Ltd., Nepal, in collaboration with SJVN.

The proposed investment, estimated at ₹290 crore, was subject to necessary approvals from the Government of India and regulatory bodies. GMR and the Nepal Electricity Authority are among the key stakeholders in GMR Upper Karnali Hydro Power Limited.

What Lies Ahead?

Despite the RBI’s initial rejection, IREDA’s decision to represent its request again signals a persistent approach toward securing approval. The coming months will be crucial in determining whether the company can successfully negotiate regulatory approvals and move forward with its investment plans.

Conclusion

IREDA’s proposed investment in Nepal’s Upper Karnali project highlights India’s commitment to renewable energy development and regional collaboration.

While the RBI’s initial rejection presents a hurdle, IREDA’s decision to appeal reflects its unwavering commitment to the project. The final outcome will be closely watched by stakeholders in the energy sector and could set a precedent for future cross-border energy investments.

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