Indian Renewable Energy Development Agency (IREDA), a Mini Ratna (Category – I) Government of India enterprise under the administrative control of Ministry of New and Renewable Energy, has signed a significant Memorandum of Understanding (MoU) with Bank of Maharashtra (BoM) today, September 18, 2023. 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 comprises several services including co-lending and co-origination support for all Renewable Energy projects, facilitating loan syndication and underwriting, management of Trust & Retention Account 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.
The MoU was signed by General Manager (Technical Services), IREDA, Shri Bharat Singh Rajput and General Manager (Retail & MSME Credit), Bank of Maharashtra, Shri Rajesh Singh at IREDA’s Business Centre, New Delhi. The signing ceremony took place in the presence of Chairman and Managing Director of IREDA, Shri Pradip Kumar Das and other senior officials from both organizations.
Speaking on the collaboration, IREDA CMD Shri Das 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. The partnership underscores the importance of Financial Institutions and Government Agencies working together in line with country’s goal to achieve India’s goal of Net Zero emissions by the year 2070, the target set by the Hon’ble 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 signed MoUs with Public Sector Banks and Financial Institutions to collaborate on co-lending for big-ticket-size projects.