Indian Renewable Energy Development Agency (IREDA) has been sanctioned a line of credit (LoC) of euro 200 million from European Investment Bank (EIB).
IREDA is a dedicated financing arm of the Ministry of New and Renewable Energy (MNRE) and has been driving the growth of renewable energy in the country. IREDA has cumulatively financed over 2,000 projects corresponding to a financial value of about Rs 22,500 crores.
The fund from EIB will be utilized for financing Renewable Energy and Energy Efficiency projects in India, IREDA said.
The LoC is secured by a sovereign guarantee from Government of India, an official statement said.
EIB has started funding Indian projects in 1993. Since then India has become the second largest recipient of EIB fund, says Magdalena Alvarez Arza, vice-president, EIB.
The total loan period will be 20 years.
IREDA has been raising funds through various bilateral and multilateral agencies and also through domestic sources through both taxable and tax-free bonds.
The agreement for LoC was signed between Debashish Majumdar, chairman and managing director, IREDA, and Magdalena Alvarez Arza, EIB vice president, in the presence of MNRE Minister Farooq Abdullah.
editor@greentechlead.com