IREDA, PNB partners to boost renewable energy projects nationwide

The MoU include joint lending, loan syndication, and underwriting, as well as the management of Trust and Retention Account (TRA) for IREDA borrowers.

IREDA and Punjab National Bank (PNB) inked a Memorandum of Understanding (MoU) with the aim of propelling renewable energy initiatives across the nation. The agreement was formalised at IREDA’s registered office in New Delhi on Monday. This pact sets the stage for collaborative efforts in co-lending and loan syndication for a wide array of renewable energy projects.

The MoU encompasses several provisions geared towards bolstering support for renewable energy endeavours. These include joint lending, loan syndication, and underwriting, as well as the management of Trust and Retention Account (TRA) for IREDA borrowers. Additionally, the agreement underscores the commitment to striving for competitive terms of sanction, encompassing pricing on IREDA borrowings. Moreover, as part of the collaboration, both IREDA and PNB retain the option to invest in bonds issued by either organisation.

The signing ceremony witnessed the participation of key officials from both entities. Dr. RC Sharma, General Manager of IREDA, and Rajeeva, Chief General Manager of PNB, penned the MoU. The event was graced by the presence of Pradip Kumar Das, Chairman & Managing Director of IREDA, Atul Kumar Goel, MD & CEO of PNB, Dr. Bijay Kumar Mohanty, Director (Finance) of IREDA, along with other senior officials from both organisations.

This collaborative endeavour signifies a significant step forward in advancing renewable energy initiatives in India, reflecting the shared commitment of IREDA and PNB towards fostering sustainable development and addressing the challenges of climate change through concerted efforts.

Expressing his views on the collaboration, CMD of IREDA Pradip Kumar Das remarked: “This strategic partnership between IREDA and PNB marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.”

This collaboration strengthens IREDA’s successful partnerships with other prominent financial institutions, including Bank of Baroda, Union Bank of India, Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank. These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.