IREDA and IIFCL Collaborate to Finance Renewable Energy Projects in India
The Indian Renewable Energy Development Agency Ltd. (IREDA) and India Infrastructure Financing Corporation Ltd. have signed a Memorandum of Understanding (MoU), which is a key step towards advancing renewable energy efforts in India (IIFCL). The co-lending, co-origination, and loan syndication of renewable energy projects, including Small Hydro projects, are made possible by this crucial agreement.
The MoU, which was signed on September 4, 2023, by Shri P R Jaishankar, Managing Director of IIFCL, and Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, has significant ramifications for the country’s renewable energy landscape. It is noteworthy that it calls for the establishment of set interest rates for borrowings from IREDA that last for three to four years. IIFCL also has the option, under the terms and conditions outlined, to invest in bonds issued by IREDA.
In his remarks on the occasion, the CMD of IREDA emphasized the importance of the strategic alliance and reaffirmed their commitment to utilizing technological and financial know-how to accelerate the development of the renewable energy sector. He stressed that this partnership precisely complies with the ambitious goal set by the Indian government to achieve a 50% share of non-fossil fuels in the country’s energy mix by 2030. They do this in order to support Prime Minister Shri Narendra Modi’s goals of a “Aatmanirbhar Bharat” (self-sufficient India) and a cleaner, more environmentally friendly future.
Two years ago, in anticipation of the expanding demand in the renewable energy industry, IREDA, a Public Sector Undertaking (PSU) operating under the Ministry of New & Renewable Energy (MNRE), developed a specialist Business Development and Consulting section. IREDA has signed MoUs with numerous federal and state organizations over time. This recently signed MoU with IIFCL is anticipated to combine IREDA’s expertise in green financing with IIFCL’s knowledge of infrastructure financing.
It is important to note that IIFCL, a 2006-founded, fully-owned Government of India corporation, is committed to providing sustainable financial support to workable infrastructure projects. Our partnership strengthens the government’s dedication to environmentally friendly and sustainable energy solutions while also speeding India’s shift to renewable energy sources.