AFD extended 100 million euro Line of Credit to IREDA
AFD extended Line of Credit of 100 million Euro to IREDA to be utilised for financing Renewable Energy and Energy Efficiency projects in India.
The Agence Francaise de Developpement (AFD) on 22 May 2014 extended Line of Credit (LoC) of 100 million euro to Indian Renewable Energy Development Agency Ltd. (IREDA). The line of credit was offered by AFD for utilizing the financing of Renewable Energy and Energy Efficiency projects in India. It was extended for a tenure of 15 years and without any guarantee from Government of India.
The agreement for receiving the LoC of 100 million euro was signed by KS Popli, Chairman and Managing Director of IREDA and Aude Flogny, the Director of AFD’s Regional Office in New Delhi.
Benefits of the agreement of Line of Credit
• The development of renewable energy sources will help India to address its environmental concerns by improving energy security
• It will spur regional development
• It will support the Indian government focus on a low carbon growth strategy for power generation in India
About Indian Renewable Energy Development Agency Ltd. (IREDA)
Indian Renewable Energy Development Agency Ltd. (IREDA) is a financing institution under the Union Ministry of New and Renewable Energy (MNRE) for renewable energy projects. Till date it has financed 14550 crore rupees for the different renewable energy projects and has a loan portfolio if over 8200 crore rupee.
Agence Francaise de Developpement (AFD)
The Agence Française de Développement (French Agency for Development - AFD) is a public development finance institution that has been working to fight poverty and foster economic growth in developing countries and the French Overseas Provinces for seventy years.
Line of Credit - LOC
Line of Credit (LOC) is an arrangement between a financial institution and a customer, which establishes a maximum loan balance that the bank permits the borrower to maintain. The line of credit can be drawn at any time by the borrower as long as he/she doesn’t exceed the maximum set in the agreement. Usually, the financial institution is bank. Benefit of the Line of Credit over the direct loan is that in usual cases the borrower is not charged over the unused credit.