IREDA and IOB Ink MoU to Co-Finance Renewable Energy Projects

IREDA has entered into an agreement with IOB for co-finance and loan syndication for renewable energy projects in the country. The MoU (Memorandum of Understanding) was signed by Dr. RC Sharma, General Manager, IREDA and Ajay Kumar Srivastava, General Manager and CEO, IOB, at IREDA's Business Center on January 16, 2024 in New Delhi.

Benefits from the agreement:

• The agreement between Indian Renewable Energy Development Agency Limited (IREDA) and Indian Overseas Bank (IOB) has created a platform for joint lending (co-lending) for renewable energy projects. The agreement between the two will also strengthen collaborative efforts in loan syndication.
• The strategic partnership between the two will help in accelerating the development of renewable energy in the country.
• This MoU includes provisions for providing joint lending and co-origination support for all renewable energy projects.

Objective of Partnership:

• The collaboration aims to make it easier to get loans and manage finances for IREDA projects, with a focus on stable interest rates over a 3–4-year period.
• This is in line with the Prime Minister's COP26 announcement to achieve 500 GW of non-fossil-based power generation capacity by 2030.

IREDA's collaboration with other banks:

• Apart from IOB, Indian Renewable Energy Development Agency Limited (IREDA) has entered into such partnerships with many other public sector financial institutions, including
  • Bank of Baroda
  • Bank of India
  • Union Bank of India
  • India Infrastructure Finance Company Limited
  • Bank of Maharashtra.

About IREDA:

• It was established in 1987.
• Chief Managing Director: Pradeep Kumar Das.
• Headquarters: New Delhi
• It was incorporated as a public limited company as a ‘non-banking financial institution’.
• It is a Miniratna (Category 1) company functioning under the administrative control of the ‘Ministry of New and Renewable Energy’, Government of India.
• Its role is to promote projects related to new and renewable energy sources and offer financial aid for their development.
• It has been notified as a 'Public Financial Institution' under Section 4A of the Companies Act, 1956.
• It is registered as a 'Non-Banking Financial Company' under Reserve Bank of India rules.
• Its objective is to promote, develop and provide financial assistance to projects related to new and renewable energy sources.