The Ministry of Finance, via Notification No. 73/2025 – Income Tax on July 9th, 2025, has designated bonds issued by the Indian Renewable Energy Development Agency (IREDA) as a ‘long-term specified asset’ under clause (ba) of the Explanation to section 54EC of the Income-tax Act, 1961. This notification applies to IREDA bonds redeemable after five years and issued on or after July 9th, 2025. IREDA, a Public Limited Government Company and Non-Banking Financial Institution, is mandated to utilize the proceeds from these bonds exclusively for renewable energy projects. A key condition for these projects is that they must be capable of servicing their debt through their own revenues, without relying on State Governments for debt servicing. This measure aims to channel investments into sustainable renewable energy initiatives, aligning with the government’s focus on bolstering the sector.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 73/2025-Income Tax | Dated: 9th July, 2025
S.O. 3060(E).— In exercise of the powers conferred by clause (ba) of Explanation to section 54EC of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies bonds redeemable after five years and issued on or after the date of this notification, by the Indian Renewable Energy Development Agency (IREDA) (a Public Limited Government Company established as a Non-Banking Financial Institution), as ‘long-term specified asset’ for the purposes of the said section.
2. IREDA shall utilise the proceeds from such bonds only for those renewable projects which can service the debt out of the project revenues without being dependent on the State Governments for the service of debts.
[Notification No. 73/2025/F. No. 225/192/2023]
Dr. CASTRO JAYAPRAKASH T., Under Secy.
