IREDA, EIB Ink 150mn-Euro Loan Agreement for Renewable Energy

Indian Renewable Energy Development Agency (IREDA) and European Investment Bank (EIB) inked a 150 million euros loan agreement, a move that will benefit over 1.1 million households with clean energy.

IREDA, EIB Ink 150mn-Euro Loan Agreement for Renewable Energy
  • IREDA, has signed the loan agreement for a second line of credit (LoC) on non-sovereign basis.
  • The line of credit is for tenure of 15 years, including a grace period of three years and will be used for financing renewable energy and energy efficiency projects in India.
  • EIB is the long-term lending institution of the European Union owned by its member states.

EIB

  • EIB is long-term lending institution of European Union owned by its member states.
  • It is also engaged in multilateral financing and works closely with other EU institutions to implement EU policy.
  • More than 90% of its activity is in Europe but it is also big investor globally.
  • EIB՚s activities focus on four priority areas including
    • innovation and skills
    • access to finance for infrastructure
    • smaller businesses
    • climate & environment.

Indian Renewable Energy Development Agency (IREDA)

  • IREDA is dedicated financing arm of Ministry of New and Renewable Energy for financing renewable and energy efficiency projects.
  • It has been spearheading growth of renewable energy in country for over three decades.
  • To meet financing requirement, it has been raising resources from various bilateral and multilateral agencies, Masala bonds and domestic - taxable and tax-free bonds.
  • It has financed renewable and energy efficiency projects of financial value of over ₹ 34,534 crore till date

Objective of IREDA

  • To give financial support to specific projects and schemes for generating electricity and⟋or energy through new and renewable sources and conserving energy through energy efficiency.
  • To strive to be competitive institution through customer satisfaction.
  • To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency⟋conservation projects.
  • Improvement in the efficiency of services provided to customers through continual improvement of systems, processes, and resources.

Examrace Team at Aug 20, 2021