IREDA and Indian Overseas Bank Join Forces to Co-Finance Renewable Energy Projects

A New Partnership for Green Energy

State-owned Indian Renewable Energy Development Agency (IREDA) and Indian Overseas Bank (IOB) have signed a memorandum of understanding (MoU) to co-finance renewable energy projects in India. The agreement was signed in the presence of IREDA CMD Pradip Kumar Das and IOB MD and CEO Ajay Kumar Srivastava in New Delhi on January 16, 2024 .

Benefits of the Collaboration

The partnership aims to provide robust financial support to renewable energy projects by combining the strengths and resources of both institutions. The agreement sets the stage for co-lending and loan syndication for a diverse spectrum of renewable energy projects across the nation, such as solar, wind, biomass, hydro, waste-to-energy, etc. The partnership also 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 .

Background of the Institutions

IREDA, under the Ministry of New and Renewable Energy, is a non-banking financial institution engaged in promoting, developing and extending financial assistance for setting up projects related to new and renewable sources of energy and energy efficiency/conservation. IOB is a major public sector bank with a network of over 3,000 branches across India and overseas. Both institutions have a long history of supporting renewable energy projects in India and have contributed to the country’s green energy transition.