IREDA signs master cooperation agreement with IFC

The Indian Renewable Energy Development Agency Ltd (IREDA) has become a signatory to the International Finance Corporation’s (IFC) master cooperation agreement. It is the twenty-seventh development finance institution globally and the second Indian institution to do so.

By becoming a signatory to the master cooperation agreement, IFC, which is a part of the World Bank Group, will provide financing for renewable energy projects across India through IREDA, the financing arm of the Ministry of New and Renewable Energy (MNRE). This, in turn, will help boost growth and create jobs.

The partnership will help standardize steps that lenders take when co-financing projects with IFC. The ultimate aim is to make local currency financing available in shorter time-frames and reduce financing costs for lenders and borrowers.

Commenting on the partnership KS Popli, CMD, IREDA, said, “The partnership will help IREDA increase its portfolio in financing renewable energy projects, to support the government of India’s plans to establish up to 175 gigawatts of renewable energy projects over the next seven years. Our clients will have access to global best practices including IFC’s environmental and social guidelines.”

Hyun Chan Cho, IFC’s Head for Infrastructure and Natural Resource for Asia Pacific said long-term risk capital lending by IFC and IREDA will help develop the private sector. He said IFC’s partnering with IREDA will help it respond more swiftly to private sector financing needs and boost job creation.