“IREDA and Bank of Maharashtra Join Hands to Boost Renewable Energy Investments”
In a significant move towards advancing renewable energy initiatives in India, the Indian Renewable Energy Development Agency (IREDA) and Bank of Maharashtra (BoM) have formalized a Memorandum of Understanding (MoU) on September 18, 2023. This strategic collaboration aims to strengthen co-lending and loan syndication for a wide spectrum of renewable energy projects across the nation.
Key Highlights of the MoU:
- Support for Renewable Energy Projects: The MoU encompasses various services, including co-lending and co-origination support for all types of renewable energy projects.
- Facilitation of Loan Syndication: The partnership will facilitate loan syndication and underwriting processes, streamlining financial support for renewable energy ventures.
- Management of Trust & Retention Account: IREDA borrowers will benefit from the management of Trust & Retention Accounts, enhancing financial management within the sector.
- Fixed Interest Rates Commitment: Bank of Maharashtra commits to establishing stable fixed interest rates over a 3-4 year period for IREDA borrowings, providing financial predictability.
- Investment in IREDA Bonds: Under the agreement, Bank of Maharashtra gains the capability to invest in IREDA-issued Bonds, subject to specific terms and conditions.
Signing Ceremony:
The momentous MoU was formally signed at IREDA’s Business Centre in New Delhi. The signatories representing the two organizations were Bharat Singh Rajput, General Manager (Technical Services) of IREDA, and Rajesh Singh, General Manager (Retail & MSME Credit) of Bank of Maharashtra. The ceremony witnessed the presence of IREDA’s Chairman and Managing Director, Pradip Kumar Das, along with other senior officials from both entities.
IREDA’s Vision:
IREDA’s CMD, Pradip Kumar Das, emphasized the importance of this collaboration in advancing the adoption of renewable energy in India. He highlighted their shared goal of creating a robust financial ecosystem for green energy projects, thereby expanding access to clean and sustainable energy for various communities and industries. This partnership underscores the crucial role of financial institutions and government agencies working in tandem to support India’s ambitious target of achieving Net Zero emissions by 2070, as outlined by the Prime Minister.
The MoU between IREDA and Bank of Maharashtra marks a significant stride in the journey towards a greener and more sustainable future for India. By combining their strengths and resources, these organizations aim to accelerate the development and implementation of renewable energy projects, contributing to India’s commitment to environmental responsibility and energy transition.
