According to reports, the Indian Renewable Energy Development Agency (IREDA) is close to signing agreements with two international lenders that will provide it a Rs. 28.5 billion credit line for promoting development of sustainable energy in the country.
The IREDA is expected to sign an agreement with Germany’s Kfw Bank in February that will provide it soft loans of Rs. 12 billion. In March, the agency is likely to enter into an arrangement with Japan International Cooperation Agency for soft loans of 16.5 billion.
“The amount would be utilised for funding various projects, although solar projects would be the primary focus,” a senior IREDA official said requesting anonymity.
The IREDA is a non-banking financial institution under the administrative control of ministry of new and renewable energy. The agency provides term loans for renewable energy and energy-efficiency projects.
Loans sanctioned by the IREDA have increased from 1,823 crore in 2009-10 to about 2,300 crore this year. The agency aims to disburse more than 1,000 crore in the current fiscal as against 889 crore in the last fiscal.
As Panchabuta had earlier reported, France has agreeded to provide Euro 70 million soft loan to Indian Renewable Energy Development Agency (IREDA) for development of renewable energy in India.
Also as we had earlier mentioned, Japan Bank for International Cooperation was planning to provide upto $2 bn equity funding for private sector projects in India including Renewable Energy and had announced plans to create Green Fund for India with other sponsors.