Indian Renewable Energy Development Agency Ltd (IREDA) has signed a Memorandum of Understanding (MoU) with the Indian Overseas Bank (IOB) to promote co-lending in Renewable Energy projects, the Ministry of New and Renewable Energy said on Thursday.

The MoU aims at setting the stage for collaborative efforts in co-lending and loan syndication for a diverse spectrum of Renewable Energy projects across the nation.

Encompassing a range of services, the MoU includes provisions for co-lending and co-origination support for all Renewable Energy projects. The partnership aims to streamline loan syndication and underwriting processes, management of Trust and Retention Account (TRA) for IREDA borrowers, and work towards fixed interest rates over a 3 to 4 year period for IREDA borrowings, the ministry said.

Speaking about the MoU, IREDA CMD Pradip Kumar Das said, “This strategic partnership between IREDA and Indian Overseas Bank 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 Prime Minister’s COP26 announcement of achieving a 500 GW Non-Fossil-based electricity generation capacity by 2030,” he added.

This collaboration builds upon IREDA’s successful partnerships with other prominent financial institutions, including Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited and Bank of Maharashtra.

These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.

Last year in September, IREDA, the largest pure-play green financing Non-Banking Finance Company in India, was upgraded from ‘Schedule B’ to the ‘Schedule A’ category of Central Public Sector Enterprises.