IREDA signs a pact with IIFCL to finance renewable energy projects

Indian Renewable Energy Development Agency Ltd. (IREDA) has signed a Memorandum of Understanding (MoU) with India Infrastructure Finance Company Ltd (IIFCL), to finance renewable energy projects.

As per Ministry of New and Renewable Energy, the MoU will empower IREDA and IIFCL to engage in Co-Lending / Co-Origination and Loan Syndication for all categories of Renewable Energy projects, including Small Hydro projects. Both organisations will strive to also fix interest rates for IREDA borrowings for a period of three to four years. Further, IIFCL may invest in the bonds issued by IREDA, as per the terms and conditions of the issue.

"The MoU was signed today by Chairman & Managing Director, IREDA, S Pradip Kumar Das and Managing Director, IIFCL, P R Jaishankar," the Ministry added

Speaking on the occasion, CMD, IREDA said: "We are pleased to partner with IIFCL and offer our techno-financial expertise to IIFCL for the development of Renewable Energy sector. With this collaboration, we will be able to support Govt. of India's target of achieving 50% share of our energy from non-fossil fuels by the year 2030. We remain confident that by working together, we will leverage our strengths and continue to serve our customers in line with Prime Minister Narendra Modi's vision of Aatmanirbhar Bharat and a clean and green India."

IREDA established a specialised Business Development and Consultancy division two years ago to meet the growing demand in the RE sector. In the past, IREDA has signed MoUs with other central and state agencies. This MoU will enable a synergy of green financing expertise of IREDA and Infra financing expertise of IIFCL.

Indian Renewable Energy Development Agency Ltd. (IREDA) is a PSU under the Ministry of New & Renewable Energy (MNRE) and India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned Government of India company set up in 2006 to provide long-term financial assistance to viable infrastructure projects.