IREDA and PNB Signed an MoU for Renewable Energy Projects

Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) recently signed a Memorandum of Understanding (MoU) with an aim to promote renewable energy initiatives across the country.

• The two organizations will work together to finance a variety of renewable energy projects by co-lending and loan syndication.
• The MoU includes various provisions to enhance support for renewable energy projects. These provisions include joint lending, loan syndication and underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and working towards competitive terms of sanction, including pricing on IREDA borrowings. 
• IREDA and PNB can invest in each other's bonds through this collaboration.

About IREDA

• Indian Renewable Energy Development Agency Limited (IREDA) is a Public Limited Government Company established in 1987 as a Non-Banking Financial Institution. 
• IREDA operates under the administrative control of the Ministry of New and Renewable Energy (MNRE) and has been categorized as a Mini Ratna (Category - I) enterprise.The company supports projects related to renewable energy, energy efficiency, and conservation by providing financial assistance. 
• Their motto is "ENERGY FOR EVER."

Punjab National Bank

Punjab National Bank (PNB) is a Delhi-based Indian public sector bank founded in May 1894. 

Atul Kumar Goel is the Managing Director and Chief Executive Officer of PNB.

About Renewable Energy

• India has made significant progress in renewable energy, ranking 4th globally in Renewable Energy Installed Capacity, Wind Power capacity, and Solar Power capacity, according to the REN21 Renewables 2022 Global Status Report. 
• The country has set an ambitious target to generate 500 GW of non-fossil fuel-based energy by 2030 under the Panchamrit initiative, which is the world's largest expansion plan in renewable energy.
• India's installed non-fossil fuel capacity, including large Hydro and nuclear, has increased by 396% in the last 8.5 years, reaching over 179.57 GW, which represents about 42% of the country's total capacity as of November 2023.
• In 2022, India witnessed the highest year-on-year growth in renewable energy additions, with an increase of 9.83%. The installed solar energy capacity has surged by 30 times in the last nine years, standing at 73.31 GW as of December 2023.
• The National Institute of Solar Energy (NISE) estimates that India's solar energy potential is around 748 GWp. Furthermore, India's installed Renewable energy capacity, including large hydro, has increased by about 128% since 2014.
• Under the provisions of The Electricity Act 2003, up to 100% foreign direct investment (FDI) is allowed under the automatic route for renewable energy generation and distribution projects.