Indian Renewable Energy Development Agency Ltd. (IREDA) has inked a noteworthy Memorandum of Understanding (MoU) with the Bank of Maharashtra (BoM). This strategic collaboration is set to promote and facilitate co-lending and loan syndication for a diverse range of renewable energy projects nationwide.
The MoU signing ceremony took place at IREDA’s Business Centre, with Shri Bharat Singh Rajput, General Manager (Technical Services) of IREDA, and Shri Rajesh Singh, General Manager (Retail & MSME Credit) of Bank of Maharashtra, formalizing the agreement. The event was graced by the presence of Shri Pradip Kumar Das, Chairman and Managing Director of IREDA, alongside senior officials from both organizations.
This pivotal MoU encompasses a range of services, including co-lending and co-origination support for all renewable energy projects. It will also facilitate loan syndication and underwriting while managing the Total Risk Assessment (TRA) for IREDA borrowers. Additionally, a commitment has been made to establish stable fixed interest rates over a 3-4-year period for IREDA borrowings. Bank of Maharashtra will also have the opportunity to invest in bonds issued by IREDA, subject to specific terms and conditions.
Speaking about this collaboration, Shri Pradip Kumar Das, CMD, IREDA, expressed, “This MoU with the 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. This partnership underscores the importance of Financial Institutions and Government Agencies working together in line with the country’s goal to achieve net-zero emissions by 2070, a target set by the Hon’ble Prime Minister.”
To address the substantial funding requirements of the renewable energy sector, which includes emerging technologies such as Green Hydrogen and Offshore Wind, IREDA has signed MoUs with various Public Sector Banks and Financial Institutions, fostering collaboration for large-scale projects in the sector. This collaborative approach is expected to play a pivotal role in propelling India towards its renewable energy goals and supporting the transition to a sustainable energy future.