IREDA Partners Union Bank of India and Bank of Baroda To Co-Finance Renewable Energy Projects in Tier-2/3 Cities and Rural India

The Indian Renewable Energy Development Agency Ltd (IREDA) has signed MoUs with Union Bank of India (UBI) and Bank of Baroda (BoB), on September 5, 2023, to accelerate the growth of renewable energy in India, particularly in tier-2 & tier-3 cities and rural areas.

The MoUs signed with UBI & BoB will empower IREDA to collaborate in co-lending and loan syndication for a wide range of renewable energy projects, including both established and emerging Renewable Energy technologies.

In recent years, IREDA has been actively encouraging partnerships with various Central and State agencies as well as financial institutions to leverage its techno-financial expertise for the development of the renewable energy sector.

Expressing his happiness about these partnerships, CMD of IREDA, Shri Pradip Kumar Das said, "Both Union Bank of India and Bank of Baroda have an extensive nationwide presence with a vast network of branches."

"This collaboration aims to extend our reach, particularly in tier-2 & tier-3 cities and rural areas, enabling us to provide unique and innovative financial support to existing and new customers. We are confident that by combining our strengths and resources, we will continue to serve our customers in alignment with the vision of the Prime Minister for Atmanirbhar Bharat and sustainable growth," the IREDA CMD said. 

Recently, IREDA has also signed an MoU with India Infrastructure Finance Company Ltd (IIFCL), to finance renewable energy projects including Small Hydro projects. Both the entities will strive to also fix interest rates for IREDA borrowings for a period of 3 to 4 years.

As on 21 August 2023, IREDA has financed 3,137 renewable energy projects with cumulative loan sanction of ₹1,55,694 crore and loan disbursement of ₹1,05,245 crore and has supported renewable energy capacity addition of 22,061 MW in the country.

IREDA recorded its highest-ever loan sanction of Rs 2,3921.06 crore and disbursement of around Rs 16,070.82 crore in 2021-22.

Formed in 1987 as a Mini Ratna (Category – I) Government of India Enterprise, IREDA is administratively controlled by the Ministry of New and Renewable Energy (MNRE). It is a Public Limited Government Company and a Non-Banking Financial Institution with an objective of setting up projects relating to new and renewable sources of energy across India.

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