In a crucial step toward accelerating renewable energy development, IREDA (Indian Renewable Energy Development Agency) and PNB (Punjab National Bank) have signed a Memorandum of Understanding. This collaborative cooperation seeks to expedite and expand access to financing for the green energy sector.

IREDA and PNB partner

The Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) signed a Memorandum of Understanding (MoU) on February 19, 2024, as a result of which, both organizations agreed to provide financing to the renewable energy projects in the country. Through the filing of an exchange, the target of the deal is to smooth out and speed up of financial approximation for developers at the core of this industry.

According to the Mint, IREDA CMD Pradeep Kumar Das expressed satisfaction, saying “This strategic partnership is an important step to accelerate the growth of renewable energy in India” We hope with internal financial support, to be strong to projects and pool our capabilities and resources to promote sustainable development and environmental awareness. He also reaffirmed his support for the President’s COP26 target of achieving 500 GW of non-fossil fuel-based electricity by 2030 and stressed the role of the MoU in achieving this goal

The IREDA-PNB cooperation will help small and large developers get funding for solar parks and wind farm projects by leveraging competitive pricing and quick credit appraisal processes.

IREDA stocks rose 0.98 percent to ₹179.75 on February 19 at 1:07 pm on the BSE. On February 19, at 1:10 pm, PNB equities were trading at ₹129.45, up 0.54% on the BSE.

According to the Mint, senior representatives from both organizations were present when R. C. Sharma, General Manager of IREDA, and Rajeeva, Chief General Manager of PNB, signed the Memorandum of Understanding. Other signatories included Pradip Kumar Das, Chairman & Managing Director of IREDA, Atul Kumar Goel, MD & CEO of PNB, and Bijay Kumar Mohanty, Director (Finance) of IREDA.

Larger renewable energy projects are anticipated to become more financially feasible for developers to undertake thanks to the MoU, which will allow IREDA and PNB to split the financial risks and profits.

Furthermore, managing the Trust and Retention Account (TRA) for IREDA borrowers will expedite project financial administration, assuring timely payments and lowering administrative responsibilities for developers, according to the official notification.