NEW DELHI: In a major boost to renewable energy financing in India, Indian Renewable Energy Development Agency Ltd. (IREDA) has signed a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) for co-lending and loan syndication of renewable energy projects across the country.
Through this strategic partnership, IREDA and PNB will jointly provide financial assistance for various renewable energy projects including solar, wind, small hydro, biomass etc. IREDA is India's leading public sector financial institution dedicated to clean energy financing.
The scope covers activities like co-lending, loan syndication, underwriting and management of trust and retention accounts.
This is expected to support the growth of green energy in alignment with India's ambitious target of achieving 500GW non-fossil fuel capacity by 2030.
On the move, IREDA said: "The MoU marks a significant milestone in IREDA's partnerships with leading financial institutions to accelerate renewable capacity additions across India. By combining our financing strengths, we aim to bankroll diverse RE projects fostering sustainability and energy security for the nation."
Established in 1987 under the administrative control of Ministry of New and Renewable Energy (MNRE), IREDA offers financial support across the renewable energy value chain including products like term loans, working capital loans, project financing as well as subscription to bonds and debentures issued by renewable energy players.
Over the last 34 years, the organization has played a key role in attracting investment and building renewable capacity in the country through its lending and consultancy services.
Punjab National Bank (PNB) is one of the oldest and largest public sector commercial banks in India.
The IREDA-PNB alliance will facilitate funding for small developers as well as large Solar Parks and Wind Farm projects leveraging competitive pricing and efficient credit appraisal mechanisms. This adds to IREDA’s existing partnerships with banks like Bank of Baroda, Union Bank and Bank of India among others to finance India's ambitious renewable energy goals.