The Indian Renewable Energy Development Agency Ltd (IREDA) has entered into a collaborative agreement with the Indian Overseas Bank (IOB) through the signing of a Memorandum of Understanding (MoU) to strengthen financial backing for renewable energy initiatives throughout India. The formal agreement, centered on co-lending and loan syndication, was formally executed at the IREDA Business Centre located in New Delhi.
IREDA, the Indian Renewable Energy Development Agency, is at the forefront of promoting sustainable energy solutions in India. Established to facilitate the growth of renewable energy projects, IREDA collaborates with prominent financial institutions like the Indian Overseas Bank (IOB).
With a shared commitment to green initiatives, IOB contributes to co-lending and loan syndication efforts, aligning with IREDA’s vision. Together, they play a pivotal role in advancing the country’s renewable energy sector, supporting the Hon’ble Prime Minister’s ambitious target of achieving 500 gigawatts of non-fossil-based electricity generation capacity by 2030.
This strategic partnership is set to deliver a comprehensive suite of services, encompassing co-lending and co-origination support tailored specifically for all renewable energy ventures. Additionally, it encompasses the proficient management of Trust and Retention Account (TRA) for borrowers associated with the Indian Renewable Energy Development Agency (IREDA).
The collaborative initiative aspires to simplify loan syndication and underwriting procedures, with a particular focus on facilitating fixed interest rates spanning a duration of 3 to 4 years for IREDA borrowings. Through this concerted effort, the alliance seeks to enhance the efficiency and efficacy of financial processes in the realm of renewable energy projects, thereby fostering sustainable development.
R. C. Sharma, the General Manager of the Indian Renewable Energy Development Agency (IREDA), and Anil Kumar, the Chief Regional Manager of the Indian Overseas Bank (IOB), officially formalized the agreement. This significant event transpired in the distinguished presence of Pradip Kumar Das, Chairman and Managing Director at IREDA, as well as Ajay Kumar Srivastava, the Managing Director and Chief Executive Officer of IOB. Additionally, the occasion was also graced by the attendance of Bijay Kumar Mohanty, the Director (Finance) at IREDA.
In expressing his views on the Memorandum of Understanding (MoU), Pradip Kumar Das, the Chairman and Managing Director (CMD) of IREDA, emphasized the profound impact of the strategic collaboration between IREDA and Indian Overseas Bank. This collaboration is viewed as a pivotal stride in their shared dedication to expediting the expansion of renewable energy initiatives within the nation.
Mr Das further stated that the primary objective is to extend robust financial backing to a broad spectrum of Renewable Energy projects, thereby nurturing sustainability and promoting heightened environmental awareness. This alliance is set to play a crucial role in fortifying the financial framework that underpins the diverse array of renewable energy endeavors to foster a greener and more sustainable future for the country.
This Memorandum of Understanding (MoU) is an integral component of IREDA’s continuous endeavors to enhance large-scale renewable energy initiatives, aligning with the Prime Minister’s commitment at COP26 to achieve a formidable 500 gigawatts of non-fossil-based electricity generation capacity by the year 2030.
This strategic initiative represents a significant progression, leveraging IREDA’s established collaborations with various eminent financial institutions such as Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, and Bank of Maharashtra.
