IREDA and IIFCL Collaborate to Power Renewable Energy Projects in India
Indian Renewable Energy Development Agency Ltd. (IREDA) has taken a significant stride towards bolstering the nation’s renewable energy landscape by forging a strategic partnership with India Infrastructure Finance Company Ltd (IIFCL). This landmark collaboration, signified by a Memorandum of Understanding (MoU) inked on September 4, 2023, will propel the financing of renewable energy ventures.
Under the aegis of this MoU, IREDA and IIFCL will engage in Co-Lending, Co-Origination, and Loan Syndication for a diverse spectrum of Renewable Energy projects, including Small Hydro projects. Moreover, both organizations are committed to establishing fixed interest rates for IREDA borrowings over a three to four-year period. Additionally, IIFCL is poised to invest in the bonds issued by IREDA, subject to the stipulated terms and conditions.
Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, expressed enthusiasm for this collaborative venture, stating, “We are delighted to join forces with IIFCL and extend our techno-financial proficiency to foster the growth of the Renewable Energy sector. Through this partnership, we aspire to contribute to the Indian Government’s ambitious target of achieving 50% of our energy from non-fossil fuels by 2030. We are confident that our synergy will capitalize on our respective strengths, aligning with Prime Minister Shri Narendra Modi’s vision of Aatmanirbhar Bharat and a sustainable, eco-friendly India.”
IREDA, recognizing the burgeoning demand in the Renewable Energy sector, established a specialized Business Development and Consultancy division two years ago. This division has been instrumental in forging MoUs with various central and state agencies. The latest MoU between IREDA and IIFCL harmonizes IREDA’s proficiency in green financing with IIFCL’s infrastructure financing acumen.
Indian Renewable Energy Development Agency Ltd. (IREDA), a Public Sector Undertaking under the aegis of the Ministry of New & Renewable Energy (MNRE), has joined forces with India Infrastructure Finance Company Ltd (IIFCL), a Government of India-owned entity established in 2006. IIFCL’s primary mandate is to provide long-term financial support to viable infrastructure projects, while IREDA is dedicated to catalyzing India’s renewable energy transformation.
