IREDA gets euro 200-million loan from European Investment Bank

CHENNAI: The European Investment Bank (EIB) has sanctioned a line of credit (LoC) of euro 200 million to Indian Renewable Energy Development Agency Ltd (IREDA) to be utilized for financing Renewable Energy and Energy Efficiency projects in India.
The loan is for a period of 20 years, and the LoC is secured by a sovereign guarantee from Government of India, according to an official statement.
To tackle the twin problems of widening power deficits and mounting carbon emissions, the Indian government has set ambitious goals to increasingly displace fossil fuels with renewable sources.
The agreement supports the Government of India’s focus on a low carbon growth strategy for power generation in India. Developing renewable energy sources not only helps address environmental concerns, but also improves energy security and spurs regional economic development.
The European Investment Bank started funding Indian project in 1993 and in this period of two decades, India has become the second largest recipient of EIB fund, said Magdalena Alvarez Arza, vice-president, EIB.
IREDA is the dedicated financing arm of the Ministry of New and Renewable Energy (MNRE) and has been spearheading the growth of renewable energy in the country. It has cumulatively financed over 2,000 projects corresponding to a financial value of about Rs 22,500 crores.
IREDA has been raising resources from various bilateral and multilateral agencies as also from domestic sources through both taxable and tax-free bonds.