IREDA inks pact with PNB for financing green energy projects

IREDA and Punjab National Bank (PNB) have joined hands by signing a Memorandum of Understanding (MoU) on Monday. The MoU aims at advancing renewable energy initiatives across the nation through joint efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects. The agreement covers 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 this collaboration, IREDA and PNB can also invest in bonds issued by either organisation.

IREDA chairman Pradip Kumar Das stated, “This strategic partnership 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.”

The collaboration not only strengthens IREDA’s position in advancing renewable energy but also aligns with the Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030. This MoU adds to IREDA’s successful partnerships with other prominent financial institutions, including Bank of Baroda, Union Bank of India, Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank, focusing on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.

The MoU between IREDA and Punjab National Bank signifies a significant milestone in the advancement and funding of large-scale renewable energy projects in India. This partnership will play a crucial role in achieving the nation’s renewable energy targets and fostering sustainability and environmental awareness.

The collaboration and MoU signing come at a crucial time as India continues to focus on expanding its renewable energy capacity and reducing its reliance on fossil fuels.
Overall, this partnership between IREDA and Punjab National Bank holds significant promise in propelling India’s renewable energy growth and transitioning towards a sustainable and environmentally conscious future.