IREDA and PNB Join Forces for Renewable Energy

Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) have signed a Memorandum of Understanding (MoU) aimed at advancing renewable energy initiatives across the nation. The agreement, signed at IREDA's registered office in New Delhi today February 19, 2024, paves the way for joint efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects.

Renewable Energy MoU

The MoU comprises various provisions aimed at enhancing support for renewable energy projects. These include joint lending, loan syndication and underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and working towards competitive terms of sanction, including pricing on IREDA borrowings. Through the collaboration, IREDA and PNB can also invest in bonds issued by either organization.

The MoU was signed by General Manager of IREDA Dr. R. C. Sharma, and Chief General Manager of PNB Shri Rajeeva, in the presence of Chairman & Managing Director of IREDA Shri Pradip Kumar Das, MD & CEO of PNB Shri Atul Kumar Goel, Director (Finance) of IREDA Dr. Bijay Kumar Mohanty, and other senior officials from both organizations.

Expressing his views on the collaboration, CMD of IREDA Shri 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.