IREDA and Bank of Maharashtra’s MoU Set to Drive Renewable Energy Investments

IREDA and Bank of Maharashtra's MoU Set to Drive Renewable Energy Investments
Share this News:
Delhi, 18th September 2023:
IREDA, the Indian Renewable Energy Development Agency, a prominent government enterprise in the renewable energy sector, inked a noteworthy Memorandum of Understanding (MoU) with Bank of Maharashtra (BoM) today, on September 18, 2023. This strategic partnership is geared towards advancing co-lending and loan syndication for a wide array of renewable energy projects spanning the nation.
The MoU encompasses a range of services, including co-lending and co-origination support for all renewable energy projects, the facilitation of loan syndication and underwriting, the management of Trust & Retention Account for IREDA borrowers, and a commitment to establishing stable fixed interest rates over a 3-4 year period for IREDA borrowings. As part of this agreement, Bank of Maharashtra gains the ability to invest in IREDA-issued Bonds, adhering to specific terms and conditions.
This momentous MoU was signed by the General Manager (Technical Services) of IREDA, Bharat Singh Rajput, and the General Manager (Retail & MSME Credit) of Bank of Maharashtra, Rajesh Singh, at IREDA’s Business Centre in New Delhi. The signing ceremony witnessed the presence of IREDA’s Chairman and Managing Director, Pradip Kumar Das, along with other senior officials from both organizations.
IREDA’s CMD, Pradip Kumar Das, commented on this collaboration, emphasizing its significance in the ongoing efforts to foster the adoption of renewable energy in India. He noted that by joining forces, they aim to create a robust financial ecosystem for green energy projects, making clean and sustainable energy accessible to more communities and industries. This partnership underscores the importance of financial institutions and government agencies working together in alignment with India’s goal of achieving Net Zero emissions by 2070, as set by the Prime Minister.
To address the substantial funding needs of the renewable energy sector, including emerging technologies such as Green Hydrogen and Offshore Wind, IREDA has entered into MoUs with various public sector banks and financial institutions to collaborate on co-lending for large-scale projects.