IREDA Partners with PNB to Boost Financing for Green Energy Projects

MoU Signed to Foster Collaborative Efforts in Renewable Energy Initiatives

The Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) formalized a Memorandum of Understanding (MoU) on Monday, signaling a joint commitment to propel renewable energy initiatives in India. This strategic collaboration aims to facilitate co-lending and loan syndication for a diverse array of renewable energy projects across the nation.

Diverse Collaborative Initiatives

The comprehensive MoU encompasses various collaborative aspects, including:

1. Joint Lending and Loan Syndication: IREDA and PNB will collaborate on joint lending and loan syndication for renewable energy projects.
2. Management of Trust and Retention Account (TRA): The agreement outlines provisions for the joint management of TRA for IREDA borrowers, ensuring efficient fund utilization.
3. Competitive Terms of Sanction: Both organizations will work towards achieving competitive terms of sanction, including pricing on IREDA borrowings.
4. Investment in Bonds: The collaboration allows IREDA and PNB to explore investment opportunities in bonds issued by either organization, further enhancing financial support.

Strengthening Commitment to Renewable Energy Growth

Pradip Kumar Das, Chairman of IREDA, highlighted the strategic significance of this partnership in accelerating renewable energy growth in the country. By leveraging combined strengths and resources, the collaboration aims to provide robust financial support to a diverse range of renewable energy projects, contributing to sustainability and environmental awareness.

Das emphasized that through this MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects. The collaborative efforts align with the Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030, underscoring the commitment to India’s renewable energy transition.

Building on Successful Partnerships

The partnership with PNB adds to IREDA’s successful collaborations with other prominent financial institutions, including Bank of Baroda, Union Bank of India, Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank. These MoUs share a common focus on co-lending and loan syndication for diverse renewable energy projects, reinforcing the commitment to India’s sustainable energy future.