IREDA, a government-owned entity, has revealed a collaborative initiative with the Indian Overseas Bank (IOB) to jointly fund renewable energy projects in India. The formal agreement was finalized with the participation of Pradip Kumar Das, CMD of IREDA, and Ajay Kumar Srivastava, MD and CEO of IOB, in the national capital, according to an official statement.
The Indian Renewable Energy Development Agency (IREDA) and the Indian Overseas Bank have collaborated through the signing of a Memorandum of Understanding (MoU). This agreement paves the way for cooperative efforts in co-lending and loan syndication for a wide range of renewable energy projects throughout the country, as stated in the announcement.
The IREDA CMD said, "By combining our strengths and resources, we aim to provide robust financial support to 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 3-4-year period for IREDA borrowings".
IREDA's collaboration with Indian Overseas Bank further strengthens its successful partnerships with notable financial institutions, such as Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, and Bank of Maharashtra, according to Das.
Operating under the Ministry of New and Renewable Energy, IREDA is a non-banking financial institution dedicated to promoting, developing, and providing financial support for the establishment of projects associated with new and renewable sources of energy, as well as energy efficiency and conservation.
