IREDA is seeking to raise funds to finance renewable energy, energy efficiency, conservation projects, and renewable energy-related services in India. The loan will have a tenure of five years, with bullet repayment and a floating interest rate linked to the Tona interest rate, which can be paid semi-annually.

The selection of the lowest bidder will be based on least cost-based selection criteria, with the total cost calculated according to IREDA's evaluation. In the event that two or more bidders propose the same cost, the bidder offering the smallest margin above the interest rate benchmark will be selected.

The invitation to bid is open to all banks and financial institutions that have extended foreign currency loans in Japanese Yen to central public sector enterprises functioning as non-banking financial companies in the past five years. Bidders are required to comply with the regulations set by the Financial Action Task Force and the Office of Foreign Assets Control.

The eligibility criteria apply solely to the bidding bank or financial institution and do not extend to the ultimate lender in cases of downselling. IREDA will raise the loan on an unsecured basis, relying only on its financial strength.

Bidders must agree to a limit on total network borrowings and must also meet the minimum capital adequacy ratio and liquidity coverage ratio requirements set by the Reserve Bank of India.