Punjab National Bank: A deal has been signed by Punjab National Bank and state-owned renewable sector non-banking financing organisation IREDA to co-finance green energy projects nationwide. “Indian Renewable Energy Development Agency (IREDA) and Punjab National Bank (PNB) have joined hands through the signing of an Agreement of Understanding (MoU) aimed at advancing renewable energy initiatives across the nation,” stated a release.
Strategic Agreement for Renewable Energy Financing
The statement claims that the agreement, which was signed today at IREDA’s office in New Delhi, opens the door for cooperative efforts in loan syndication and co-lending for a wide range of renewable energy projects. In the presence of Pradip Kumar Das, Chairman & Managing Director of IREDA, and Atul Kumar Goel, MD & CEO of PNB, R C Sharma, General Manager of IREDA, and Rajeeva, Chief General Manager of PNB, signed the Memorandum of Understanding.
Strategic Partnership for Accelerating Renewable Energy Growth
Das said in the statement, “This strategic partnership between IREDA and PNB 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.”
“Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with Prime Minister Narendra Modi’s announcement at United Nations climate change conference (CoP26) to achieve 500 GW non-fossil fuel-based electricity generation capacity by 2030,” he added.
Enhancing Funding Mechanisms for Renewable Initiatives
The agreement includes a number of clauses designed to improve funding for renewable energy initiatives. These include working towards competitive terms of sanction, including pricing on IREDA borrowings, managing Trust and Retention Accounts (TRA) for IREDA borrowers, collaborative lending, loan syndication and underwriting, and so forth. Through this partnership, IREDA and PNB can also participate in the bonds issued by each other.
Building on Existing Collaborations
The aforementioned collaboration serves to reinforce IREDA’s already robust connections with other notable financial organisations, such as Indian Overseas Bank, Bank of Maharashtra, Union Bank of India, Bank of Baroda, and India Infrastructure Finance Company Limited. These Memorandums of Understanding also centre on loan syndication and co-lending for a broad spectrum of renewable energy projects around the nation.
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