IREDA and Punjab National Bank (PNB) have entered into an MoU to promote renewable energy projects across India. The agreement, signed at IREDA’s New Delhi office on February 19, 2024, enables collaboration in co-lending and loan syndication for various renewable energy initiatives.
IREDA (Indian Renewable Energy Development Agency Limited) is a leading public sector financial institution in India, dedicated to promoting and financing renewable energy projects. Established in 1987, IREDA provides financial assistance for projects related to wind, solar, bioenergy, small hydro, and energy efficiency.
Punjab National Bank (PNB) is one of the oldest and largest public sector banks in India, with a rich history dating back to 1894. Headquartered in New Delhi, PNB offers a wide range of banking products and services, including retail and corporate banking, agricultural banking, and international banking. The bank has a strong presence across India with a vast network of branches and ATMs.
The Memorandum of Understanding (MoU) includes several provisions aimed at bolstering support for renewable energy projects. These provisions encompass joint lending, loan syndication, and underwriting, as well as the management of the Trust and Retention Account (TRA) for IREDA borrowers. Additionally, the agreement focuses on achieving competitive terms for IREDA borrowings, including pricing.
Under this partnership, IREDA and PNB may also invest in bonds issued by either entity. The MoU was signed by Dr R. C. Sharma, General Manager of IREDA, and Rajeeva, Chief General Manager of PNB, in the presence of Pradip Kumar Das, Chairman & Managing Director of IREDA, Atul Kumar Goel, MD & CEO of PNB, Dr Bijay Kumar Mohanty, Director (Finance) of IREDA, and other senior officials from both organizations.
The CMD of IREDA, Shri Pradip Kumar Das, expressed his thoughts on the collaboration, stating, “The partnership between IREDA and PNB is a significant step in our commitment to accelerate renewable energy growth in the country. By leveraging our strengths and resources, we aim to provide strong financial support for various renewable energy projects, promoting sustainability and environmental awareness.
Through the MoU and previous agreements with other leading financial institutions, IREDA is well-equipped to finance large-scale renewable energy projects, in line with the Hon’ble Prime Minister’ Narendra Modis COP26 pledge to achieve 500 GW of Non-Fossil-based electricity generation capacity by 2030.”
This collaboration further enhances IREDA’s successful partnerships with other notable financial institutions such as Bank of Baroda, Union Bank of India, Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank. These MoUs also focus on co-lending and loan syndication for various Renewable Energy projects nationwide.
