The Indian Renewable Energy Development Agency (IREDA) and Punjab National Bank (PNB) have inked a groundbreaking Memorandum of Understanding (MoU), igniting new momentum for the renewable energy sector in the nation. The accord, forged at IREDA’s headquarters in New Delhi on February 19, 2024, is designed to spur collaborative lending and loan syndication for an expansive array of renewable energy endeavours.
The MoU encompasses a range of provisions aimed at heightening support for renewable energy ventures. These include joint lending, loan syndication, and underwriting, along with managing the Trust and Retention Account (TRA) for IREDA borrowers. Furthermore, both parties have committed to striving for competitive terms of sanction, such as pricing for IREDA borrowings. Through the partnership, IREDA and PNB will also be able to invest in bonds issued by either entity.
The agreement was formalised by IREDA’s General Manager Dr RC Sharma and PNB’s Chief General Manager, Rajeeva, in the presence of IREDA’s Chairman & Managing Director Pradip Kumar Das, and PNB’s MD & CEO Atul Kumar Goel. Also present were IREDA’s Director (Finance) Dr Bijay Kumar Mohanty, and other senior officials from both organisations.
Commenting on the strategic alliance, IREDA’s CMD, Pradip Kumar Das, underscored its significance in the realm of renewable energy growth. He stated, “This strategic partnership between IREDA and PNB marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.”
This collaboration is yet another testament to IREDA’s track record of successful partnerships with other esteemed financial institutions. Prior MoUs with institutions such as Bank of Baroda, Union Bank of India, Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank have similarly focused on co-lending and loan syndication for a wide spectrum of renewable energy projects across the nation.
