In a move aimed at advancing renewable energy initiatives, Indian Renewable Energy Development Agency Ltd (IREDA) and Punjab National Bank (PNB) signed a Memorandum of Understanding (MoU) on Monday.

The agreement was signed at IREDA’s registered office, which paves the way for joint efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects.

The MoU was signed by General Manager of IREDA Dr RC Sharma, and Chief General Manager of PNB Rajeeva, in the presence of Chairman and Managing Director of IREDA Pradip Kumar Das, MD and CEO of PNB, 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 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,” he added.

“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,” he added.

The MoU comprises various provisions aimed at enhancing support for renewable energy projects, Ministry of New and Renewable Energy said in a statement.

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.

It is worth mentioning that the IREDA has already partnered with Bank of Baroda, Union Bank of India, Bank of india, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank.