The Indian Renewable Energy Development Agency Ltd (IREDA) has entered into a Memorandum of Understanding (MoU) with the Indian Overseas Bank (IOB) to facilitate co-lending initiatives in renewable energy projects, as announced by the Ministry of New and Renewable Energy on Thursday.

The primary objective of the MoU is to foster collaborative efforts in co-lending and loan syndication for a diverse range of renewable energy projects across the nation. The comprehensive MoU encompasses various services, including co-lending and co-origination support for all renewable energy projects. The partnership seeks to streamline processes related to loan syndication and underwriting, manage Trust and Retention Accounts (TRA) for IREDA borrowers, and work towards establishing fixed interest rates for IREDA borrowings over a 3 to 4-year period, as stated by the ministry.

IREDA CMD Pradip Kumar Das highlighted the significance of the strategic partnership, emphasizing its role in accelerating the growth of renewable energy in the country. By leveraging the strengths and resources of both entities, the collaboration aims to provide robust financial support for a diverse range of renewable energy projects, thereby contributing to sustainability and environmental awareness.

Das further mentioned that through the MoU and existing agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects. This aligns with the Prime Minister's COP26 announcement, which aims to achieve a 500 GW non-fossil-based electricity generation capacity by 2030.

The collaboration with the Indian Overseas Bank builds on 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 agreements, like the current MoU, focus on co-lending and loan syndication for a wide range of renewable energy projects across the country.

In September of the previous year, IREDA, recognized as the largest pure-play green financing Non-Banking Finance Company in India, achieved an upgrade from 'Schedule B' to the 'Schedule A' category of Central Public Sector Enterprises.