IREDA, a state-owned non-banking finance company in the renewable sector, and Punjab National Bank have signed an agreement to jointly finance green energy projects nationwide. "Indian Renewable Energy Development Agency (IREDA) and Punjab National Bank (PNB) have joined hands through the signing of a Memorandum of Understanding (MoU) aimed at advancing renewable energy initiatives across the nation", a statement said.
As per the announcement, the agreement was signed at IREDA's New Delhi office, facilitating collaborative efforts in co-lending and loan syndication for a wide range of renewable energy projects. R C Sharma, General Manager of IREDA, and Rajeeva, Chief General Manager of PNB, executed the MoU in the presence of Pradip Kumar Das, Chairman & Managing Director of IREDA, and Atul Kumar Goel, MD & CEO of PNB.
Das said in the statement, "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".
With the MoU and previous agreements established with prominent financial institutions, IREDA is strategically equipped to finance extensive renewable energy ventures, in accordance with Prime Minister Narendra Modi's commitment at the United Nations Climate Change Conference (CoP26) to attain a 500 GW capacity of non-fossil fuel-based electricity generation by 2030.
The agreement encompasses several measures designed to bolster assistance for renewable energy projects. These encompass collaborative lending, loan syndication, and underwriting, as well as the administration of Trust and Retention Accounts (TRAs) for IREDA borrowers. Additionally, efforts will be made to secure competitive terms for approval, including pricing for IREDA borrowings. Furthermore, both IREDA and PNB have the opportunity to invest in bonds issued by either party through this partnership.
This alliance further solidifies IREDA's fruitful collaborations with other notable financial institutions such as Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank. Similar to this MoU, these agreements center on co-lending and loan syndication to support diverse renewable energy projects nationwide.