India’s state-run lender IREDA remains optimistic about recovering its exposure to Gensol Engineering despite the ongoing insolvency process. With ₹275 crore provisioned against a total ₹640 crore exposure, the institution signals stability in asset quality and a possible reversal of provisions in the coming quarters.
India’s state-owned renewable energy financier, IREDA, has expressed confidence in recovering its exposure to the troubled electric mobility borrower, Gensol Engineering, without needing to increase current provisioning. The assurance comes amidst ongoing insolvency proceedings under the National Company Law Tribunal (NCLT), where IREDA became the first lender to initiate the process.
According to IREDA Chairman & Managing Director Pradip Kumar Das, the ₹275 crore provision made in the June 2025 quarter against the ₹640 crore total exposure is considered temporary.
If the resolution process remains on track and cash flows resume as expected, there might be scope to reverse some of the provisioning in the coming quarters.”
Chairman & Managing Director Pradip Kumar Das, IREDA
Initially, IREDA’s exposure to Gensol exceeded ₹700 crore. However, over ₹100 crore has already been recovered via bank guarantees and fixed deposit withdrawals, reducing the net outstanding amount. The lender is now actively participating in the resolution process, with an interim resolution professional already in place and the committee of creditors (CoC) having met last week. Confirmation of a resolution professional is anticipated within this month.
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While other financial institutions have opted for alternative recovery routes, IREDA is following a prudent and policy-compliant approach. “We are assessing the situation based on Reserve Bank of India guidelines. At this stage, it appears to be more a case of governance lapses than outright fraud,” Das remarked.
Despite the setback with Gensol, IREDA remains bullish on India’s e-mobility sector, describing its long-term fundamentals as robust. The lender noted that certain leased vehicles under Gensol’s portfolio remain operational.
The immediate goal is to restart invoicing, reactivate IT systems, and unfreeze accounts. These operational milestones will improve cash flow visibility.”
Chairman & Managing Director Pradip Kumar Das, IREDA
This strategic clarity comes at a time when IREDA’s Q1 profit saw a decline, primarily due to elevated provisioning. However, with indications of resolution and revival underway, the lender expects its financials to stabilize in upcoming quarters.
As India accelerates its push for renewable energy and electric mobility adoption, institutions like IREDA play a critical role in financing and managing sectoral risks with resilience and foresight.
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