Moneycontrol PRO
HomeNewsBusinessMarketsIREDA confident of recovery from Gensol EV assets, provisioning may not rise

IREDA confident of recovery from Gensol EV assets, provisioning may not rise

IREDA was the first lender to file for insolvency against Gensol and has since seen an interim resolution professional (IRP) appointed. A meeting of the committee of creditors (CoC) was held last week and a resolution professional (RP) is expected to be confirmed this month.

July 22, 2025 / 09:31 IST
The lender has bet on the long-term viability of the e-mobility sector, citing strong fundamentals.

The lender has bet on the long-term viability of the e-mobility sector, citing strong fundamentals.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

State-run renewable energy financier IREDA sees no further requirement of provisioning for its exposure to troubled borrower Gensol Engineering, as cash flows may resume, thus easing concerns over a potential write-off, lender's Chairman & Managing Director Pradip Kumar Das told Moneycontrol on July 21.

The lender has provisioned Rs 275 crore during the June quarter against a total exposure of Rs 640 crore to Gensol, currently undergoing insolvency under the National Company Law Tribunal (NCLT). Initially, IREDA had an exposure of over Rs 700 crore and the lender recovered a little over Rs 100 crore via bank guarantees as well as withdrawal of the FD money.

"This Rs 275 crore provision is a temporary one. If the process continues on track, we may not need to increase it - and we may even reverse some of it over the next couple of quarters,” Das told Moneycontrol.

IREDA was the first lender to file for insolvency against Gensol and has since seen an interim resolution professional (IRP) appointed. A meeting of the committee of creditors (CoC) was held last week and a resolution professional (RP) is expected to be confirmed this month, according to Das. Read More

Another lender, Power Finance Corporation (PFC) has opted the Debt Recovery Tribunal (DRT) route to recover dues.

While PFC has listed the case as a ‘suspected fraud’, IREDA is yet to classify it as the same. “We have to go by RBI’s fraud policy. Without a detailed investigation, we cannot declare it as fraud. As of now, it appears to be a case of misgovernance or careless governance,” Das said.

Read More: IREDA Q1 profit slumps 36% as bad loans surge, Gensol exposure in focus

The lender has bet on the long-term viability of the e-mobility sector, citing strong fundamentals. “We don’t foresee any kind of challenge in the e-mobility sector. The same company was doing well until the fiasco happened,” he added.

“Some leased cars are already running, so that’s not a concern. The task is to restart invoicing, revive the IT system, and unfreeze accounts,” Das said.

Aishwarya Nair
Manish M. Suvarna
Manish M. Suvarna is Senior Correspondent at Moneycontrol. He writes on the Indian money markets, RBI, Banks and NBFCs. He tweets at @manishsuvarna15. Contact: Manish.Suvarna@nw18.com
first published: Jul 22, 2025 09:31 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347