The Indian Renewable Energy Development Agency (IREDA) has taken a significant step towards advancing renewable energy adoption in India by signing a Memorandum of Understanding (MoU) with Bank of Maharashtra (BoM) on September 18, 2023. IREDA, a Category – I Mini Ratna enterprise under the administrative control of the Ministry of New and Renewable Energy, has embarked on a collaboration with BoM to promote co-lending and loan syndication for a diverse range of renewable energy projects across the nation.
This strategic partnership encompasses various services aimed at bolstering the renewable energy sector. It includes co-lending and co-origination support for all renewable energy projects, facilitating loan syndication and underwriting, managing Trust & Retention Accounts for IREDA borrowers, and committing to establishing stable fixed interest rates for IREDA borrowings over a 3-4 year period. Additionally, the agreement allows Bank of Maharashtra to invest in Bonds issued by IREDA, adhering to the specified terms and conditions of the offering.
IREDA’s Chairman and Managing Director (CMD), Das, spoke about the significance of this collaboration, stating, “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 between IREDA and Bank of Maharashtra is aligned with India’s ambitious goal of achieving net-zero emissions by 2070, as set by the Hon’ble Prime Minister. It underscores the vital role played by financial institutions and government agencies in realizing this target and addressing the nation’s energy needs while minimizing environmental impact.
In response to the burgeoning funding requirements of the renewable energy sector, which includes emerging technologies like Green Hydrogen and Offshore Wind, IREDA has pro actively entered into MoUs with public sector banks and financial institutions. These collaborations are geared towards facilitating co-lending for large-scale renewable energy projects, which are crucial in driving India’s transition to a sustainable energy future.
The partnership between IREDA and Bank of Maharashtra represents a significant stride towards a greener and more sustainable India. It is a testament to the commitment of both entities to promote clean energy solutions and contribute to the global fight against climate change.
