New Delhi, July 10 -- The central government has granted tax-saving status to PSU renewable projects financing company IREDA Ltd's bonds under Section 54EC of the Income Tax Act.

This will facilitate low-cost fundraising for renewable energy and offer capital gains tax exemption to investors.

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance has notified bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) as 'long-term specified asset' under section 54EC of the Income-tax Act, 1961.

The notification came into effect from July 9, 2025, as per a statement from the Ministry of New and Renewable Energy on Thursday.

As per the notification, bonds redeemable after five years and issued by IREDA o...