An agreement was signed between the Indian Renewable Energy Development Agency Ltd. (IREDA), a PSU under the Ministry of New and Renewable Energy (MNRE), and India Infrastructure Finance Company Ltd (IIFCL), a wholly-owned government of India company.
The MoU was signed by Pradip Kumar Das, Chairman and Managing Director, IREDA and PR Jaishankar, Managing Director, IIFCL. The agreement will empower IREDA and IIFCL for
co-lending/co-origination and loan syndication for all renewable energy projects, including small hydro projects. Both organisations will also strive to fix interest rates for IREDA borrowings for a period of three to four years. Further, IIFCL may invest in the Bonds issued by IREDA as per the terms and conditions of the issue.
Das commented, “We are pleased to partner with IIFCL and offer our techno-financial expertise to IIFCL for the development of renewable energy sector. With this collaboration, we shall be able to support government of India’s target to achieve 50% share of energy from non-fossil fuels by 2030. We remain confident that by working together, we will leverage our strengths and continue to serve our customers and march towards a clean and green India”.
The press release stated that IREDA has established a specialised business development and consultancy division two years ago to meet the growing demand in the renewable energy sector. In the past, IREDA has signed agreements with other central/state agencies. Through this agreement, the expertise of green financing of IREDA and the expertise of infrastructure financing of IIFCL will synergise with each other.
