IREDA and IOB forge new alliance for renewable energy financing in India
In a significant move to bolster renewable energy projects across India, Indian Renewable Energy Development Agency Ltd. (IREDA) and Indian Overseas Bank (IOB) have entered into a strategic partnership. This collaboration was formalized with the signing of a Memorandum of Understanding (MoU) at IREDA’s Business Centre in New Delhi, marking a major leap forward in the nation’s commitment to renewable energy development.
A Milestone in Renewable Energy Financing
The MoU, signed by Dr. R. C. Sharma, General Manager of IREDA, and Shri Anil Kumar, Chief Regional Manager of IOB, was witnessed by notable dignitaries. These included Pradip Kumar Das, Chairman & Managing Director of IREDA, and Ajay Kumar Srivastava, MD & CEO of IOB, among other senior officials from both organizations.
Pradip Kumar Das, highlighting the importance of this partnership, stated, “This strategic partnership between IREDA and Indian Overseas Bank marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness.”
Strategic Co-Lending Initiative: IREDA Partners with Indian Overseas Bank to Boost Renewable Energy Projects
Expanding Horizons in Green Energy Financing
The MoU encompasses a wide range of services, including provisions for co-lending and co-origination support for all Renewable Energy projects. It aims to streamline the loan syndication and underwriting processes, and manage the Trust and Retention Account (TRA) for IREDA borrowers. Moreover, the partnership is expected to work towards fixed interest rates over a 3–4-year period for IREDA borrowings.
This alliance is not the first of its kind for IREDA; it builds upon the agency’s successful partnerships with other prominent financial institutions such as Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, and Bank of Maharashtra. These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.
Aligning with National Goals for Sustainable Energy
The partnership is a significant stride in aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030. It represents a vital step in India’s journey towards a more sustainable and environmentally conscious future, ensuring the nation remains at the forefront of renewable energy development.
This landmark partnership between IREDA and IOB promises to pave the way for more efficient and effective financing of renewable energy projects, driving India towards achieving its ambitious green energy targets.