IREDA inks MoU with Bank of Maharashtra for project financing

The Indian Renewable Energy Development Agency (IREDA) has signed a Memorandum of Understanding (MoU) with the Bank of Maharashtra to fund a diverse spectrum of renewable energy projects.

IREDA's administrative control is under the Ministry of New and Renewable Energy.

Under this agreement, the Bank of Maharashtra can invest in the Bonds issued by IREDA, an official release from the Ministry of New and Renewable Energy said.

Speaking on the collaboration, IREDA CMD Pradip Kumar Das, said, "By joining forces, we aim to provide a robust financial ecosystem for green energy projects, making clean and sustainable energy accessible to more communities and industries.”

“The partnership underscores the importance of financial institutions and government agencies working together in line with the country's goal to achieve India's goal of Net Zero emissions…”, Das added.

India aims to meet its 50 per cent energy needs through renewable sources by 2030.

At the COP26 summit in Glasgow in 2021, Prime Minister Narendra Modi committed to an ambitious five-part "Panchamrit" pledge, including reaching 500 GW of non-fossil electricity capacity, to generate half of all energy requirements from renewables, to reduce emissions by 1 billion tons by 2030.

India also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.

India meets a sizable portion of its energy needs through imports, and new energy sources are seen as an avenue to reduce the dependence on imported fuel.