IREDA and US Exim Bank Signed MoU on cooperation on clean energy investment
Indian Renewable Energy Development Agency Ltd ( IREDA) and US Exim Bank signed a Memorandum of Understanding (MOU) with respect to cooperation on clean energy investment.
Indian Renewable Energy Development Agency Ltd ( IREDA) and US Export-Import (Exim) Bank on 18 November 2014 signed a Memorandum of Understanding (MoU) with respect to cooperation on clean energy investment.
The MoU was signed by KS Popli, Chairman & Managing Director IREDA, and Fred P Hochberg, Chairman and President of Exim Bank of the United States
Highlights of the agreement
Under the agreement, US Exim Bank will provide medium and long-term loans amounting to 1 billion US dollars to finance U.S. technologies, products and services utilized during commercial development activities within the clean energy sector by IREDA.
The proposed credit facility carries no specific commitment on the part of IREDA and will depend on the import of US equipment to India and attractiveness of credit facility to the project developers in India.
This US Exim Bank facility will be available for financing of imported US equipment and in addition to financing of 30 percent of domestic component.
With the above proposed facility, IREDA will be providing a new window of credit facility to developers who would like to avail this facility to meet their specific requirement. The credit facility will be available for a repayment period of 18 years with the same fixed rate of interest.
The MoU is intended to establish a framework for cooperation in the financing of creditworthy entities for renewable energy projects and to facilitate the export of goods and services of U.S. origin or manufacture in India and various forms of collaboration between the IREDA & US-Exim Bank.
The sectors that have been identified as priority areas of clean energy investment cooperation under this MoU include Solar (utility scale PV and CSP including solar tower), Wind, Hydro and any other Renewable Energy projects, Waste-to-Energy, Other areas of cooperation as agreed.
Indian Renewable Energy Development Agency Ltd ( IREDA)
IREDA is a Central Public Sector Undertaking functioning under the administrative control of Union Ministry of New and Renewable Energy (MNRE).
It is a developmental financial institution in the field of Renewable Energy and provides financial assistance in the form of term loans to the eligible project developers for setting up new and renewable sources of energy and energy efficiency projects.