IREDA Enters Agreement With Punjab National Bank To Co-Finance Green Energy Projects

The state-owned renewable energy company inked a Memorandum of Understanding (MoU) with the lender to target boosting renewable energy initiatives across the country, an official statement revealed

The agreement also allows both entities to invest in the bonds issued by either of the entities via the collaboration

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Indian Renewable Energy Development Agency (IREDA) signed an agreement with Punjab National Bank on Monday to co-finance green energy projects in India. The state-owned renewable energy company inked a Memorandum of Understanding (MoU) with the lender to target boosting renewable energy initiatives across the country, an official statement revealed. 

The pact, signed at the IREDA office in New Delhi, aims to enhance efforts in co-lending and loan syndication for a diverse range of renewable energy projects. The agreement was signed by R C Sharma, General Manager, IREDA and Rajeeva, Chief General Manager, PNB, reported PTI.

Commenting on the agreement, Pradip Kumar Dad, Chairman and MD, IREDA, said, “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 Prime Minister Narendra Modi's announcement at United Nations climate change conference (CoP26) to achieve 500 GW non-fossil fuel-based electricity generation capacity by 2030.”

The agreement also includes several provisions aimed at increasing support for renewable energy projects, such as joint lending, loan syndication, underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and competitive terms of sanction.

The agreement also allows both entities to invest in the bonds issued by either of the entities via the collaboration. Notably, IREDA is involved in successful partnerships with major financial entities, like the Bank of Baroda, Bank of India, Union Bank of India, Bank of Maharashtra, and Indian Overseas Bank, among others.