The CBDT vide Notification No. 73/2025 dated July 09, 2025 notifies that bonds issued by IREDA after July 9, 2025, and redeemable after five years, qualify as ‘long-term specified assets’ under section 54EC of the Income-tax Act. IREDA must use proceeds solely for renewable projects that can repay debt independently of State Government support.
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.
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.
The Notification can be accessed at: https://a2ztaxcorp.com/wp-content/uploads/2025/07/CBDT-NN-Notification-No.-73_2025.pdf
