European Investment Bank (EIB) and Indian Renewable Energy Development Agency (IREDA) Ltd. have signed a loan agreement for a second line of credit (LoC) of Euro 150 million on non-sovereign basis here, today.
The line of credit is for tenure of 15 years including a grace period of 3 years, and it will be used for financing Renewable Energy and Energy Efficiency projects in India. More than 1.1 million households are expected to benefit from clean energy produced with these funds.
IREDA said that the speed with which the second line of credit was negotiated shows the mutual confidence and comfort that EIB and IREDA had developed after working with each other for last 4 years.
Moreover, the EIB has extended this line of credit without insisting for sovereign guarantee from Government of India, which also shows their commitment and confidence in the sector.
IREDA is the dedicated financing arm of the Ministry of New and Renewable Energy (MNRE) for financing the renewable and energy efficiency projects and has been spearheading the growth of renewable energy in the country for over three decades.
It has financed renewable and energy efficiency projects of financial value of over Rs.34,534.06 crore till date. To meet the financing requirement of renewable energy projects in the country, IREDA has been raising resources from various bilateral and multilateral agencies, Masala bonds, and domestic – taxable and tax-free bonds.