IREDA, Bank of Maharashtra join forces to boost renewable energy financing

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IREDA, Bank of Maharashtra join forces to boost renewable energy financing

IREDA, Bank of Maharashtra join forces to boost renewable energy financing

Industry News
Sep 21,23

As part of this agreement, Bank of Maharashtra has the opportunity to invest in the Bonds issued by IREDA, adhering to the specified terms and conditions of the offering.

IREDA, Bank of Maharashtra join forces to boost renewable energy financing

The Memorandum of Understanding (MoU) encompasses a range of services, including co-lending and co-origination support for all Renewable Energy projects, facilitating loan syndication and underwriting, managing the Trust & Retention Account for borrowers of the Indian Renewable Energy Development Agency (IREDA), and a commitment to establishing stable fixed interest rates spanning a 3-4 year period for IREDA borrowings. As part of this agreement, Bank of Maharashtra has the opportunity to invest in the Bonds issued by IREDA, adhering to the specified terms and conditions of the offering.

The MoU signing ceremony occurred at IREDA's Business Centre in New Delhi and was officiated by Bharat Singh Rajput, General Manager (Technical Services) of IREDA, and Rajesh Singh, General Manager (Retail & MSME Credit) of Bank of Maharashtra. Notable figures present at the event included Pradip Kumar Das, Chairman and Managing Director of IREDA, along with senior officials from both organisations.

Commenting on this collaboration, Das, the CMD of IREDA, stated, "This MoU with Bank of Maharashtra represents another significant stride in our ongoing endeavors to foster the adoption of Renewable Energy in India. By pooling our resources, we aim to establish a robust financial ecosystem for Green Energy projects, thereby extending access to clean and sustainable energy to more communities and industries. This partnership underscores the pivotal role of Financial Institutions and Government Agencies working in tandem, aligning with the country's objective of achieving India's Net Zero emissions goal by 2070, as set by the Hon’ble Prime Minister.”

In response to the substantial funding requirements of the Renewable Energy sector, which includes emerging technologies such as Green Hydrogen and Offshore Wind, IREDA has entered into MoUs with Public Sector Banks and Financial Institutions to collaborate on financing significant projects in this domain.

Source: PIB