CHENNAI: Reliance Capital subsidiary Reliance Commercial Finance (RCF) announced on Monday that it has signed an agreement for a Rs 300-crore loan from the Indian Renewable Energy Development Agency (IREDA). The loan is to be used to advance credit to green power projects in the renewable energy sector, as well as to energy-efficiency projects.
“Reliance Commercial Finance is already a strong known name in the renewable energy funding space, especially related to solar and wind energy. Our partnership with IREDA opens new opportunities for us to create solutions for the renewable power sector,” stated Devang Mody, executive director and CEO, Reliance Commercial Finance, in a company statement.
Reliance Commercial Finance is the commercial lending arm of Reliance Capital, while IREDA is a central public-sector undertaking under the Ministry of New and Renewable Energy. IREDA can allocate and dispense funds to develop renewable energy projects in order to boost capacity as per the government’s targets.
According to the company’s statement, Reliance Commercial Finance has funded wind and solar energy projects that have a cumulative capacity of more than 1,800 megawatts. The company also provides financial assistance for developing infrastructure for such projects.
“With the funding, we are confident that RCFL (Reliance Commercial Finance) will provide solutions and help fill any gaps in financing the Renewable Energy sector,” said K S Popli, chairman & managing director, IREDA.
Reliance Commercial Finance had a total income of Rs 490 crore during the first quarter of this financial year. Total disbursements of the company stood at Rs 3,579 crore as at the end of June 2017 driven by strong growth in the SME segment.Shares of Reliance Capital, the parent company, closed the day up 2.76 percent in value.