IREDA Partners With Indian Overseas Bank To Boost Renewable Energy Projects
In a significant move towards advancing renewable energy initiatives in India, the State-owned Indian Renewable Energy Development Agency (IREDA) announced a strategic partnership with Indian Overseas Bank (IOB) on Tuesday.
The Memorandum of Understanding (MoU) was signed in the national capital, marking a collaborative effort between the two entities to co-finance a wide range of renewable energy projects across the country.
The signing ceremony was attended by IREDA CMD Pradip Kumar Das and IOB MD and CEO Ajay Kumar Srivastava, signifying a mutual commitment to supporting sustainable and eco-friendly energy ventures.
The agreement establishes the groundwork for co-lending and loan syndication for various renewable energy projects, aiming to leverage the combined strengths and resources of IREDA and Indian Overseas Bank.
This collaboration will facilitate streamlined processes in loan syndication, underwriting, and the management of Trust and Retention Account (TRA) for IREDA borrowers. Additionally, it aims to work towards offering fixed interest rates over a 3-4 year period for IREDA borrowings, providing stability and predictability in financing.
IREDA CMD Pradip Kumar Das expressed optimism about the collaboration, stating, "By combining our strengths and resources, we aim to provide robust financial support to renewable energy projects." The partnership aligns with the broader goal of promoting sustainable practices and meeting the growing energy demands of the nation through eco-friendly sources.
This collaboration follows IREDA's successful partnerships with other prominent financial institutions, including Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, and Bank of Maharashtra.
It reflects the continued efforts of IREDA, under the Ministry of New and Renewable Energy, as a non-banking financial institution committed to promoting, developing, and extending financial assistance for projects related to new and renewable sources of energy and energy efficiency/conservation.
As India continues to emphasise its commitment to renewable energy, this partnership is poised to play a pivotal role in accelerating the transition towards a more sustainable and environmentally conscious energy landscape.
