New Delhi: Indian Renewable Energy Development Agency Limited (IREDA) on Monday signed a significant Memorandum of Understanding (MoU) with Bank of Maharashtra (BoM). According to IREDA, this collaboration aims to promote and facilitate co-lending and loan syndication for a diverse spectrum of Renewable Energy projects across the nation.
The MoU has been signed by IREDA’s General Manager (Technical Services) Bharat Singh Rajput and BoM’s General Manager (Retail & MSME Credit) Rajesh Singh at IREDA’s Business Centre. The signing ceremony took place in the presence of IREDA CMD Pradip Kumar Das and other senior officials from both organisations.
The MoU comprises several services including co-lending and co-origination support for all Renewable Energy projects, facilitating loan syndication and underwriting, management of TRA for IREDA borrowers, and a commitment to establishing stable fixed interest rates spanning a period of 3-4 years for IREDA borrowings. Under this agreement, Bank of Maharashtra can invest in the Bonds issued by IREDA in accordance with the specified terms and conditions of the offering.
Speaking on the collaboration, IREDA CMD said, "This MoU with Bank of Maharashtra is another significant step in our ongoing efforts to promote renewable energy adoption in India. By joining forces, we aim to provide a robust financial ecosystem for green energy projects, making clean and sustainable energy accessible to more communities and industries. This partnership underscores the importance of Financial Institutions and Government Agencies working together in line with country's goal to achieve net-zero emissions by 2070, target set by the Prime Minister.”
To address the substantial funding requirement of the renewable energy sector, including emerging technologies such as green hydrogen and offshore Wind, IREDA has singed MoUs with Public Sector Banks and Financial Institutions to collaborate on co-lending for big ticket size projects.