A Memorandum of Understanding (MOU)
has been signed between Indian Renewable Energy Development Agency Ltd ( IREDA)
and US Exim Bank with respect to cooperation on clean energy investment. The
MoU was signed by Mr K.S. Popli, Chairman & Managing Director IREDA, and Mr
Fred P Hochberg, Chairman and President, Export-Import Bank of the United
States here today in the presence of Shri Upendra Tripathi, Secretary, Ministry
of New and Renewable Energy (MNRE), and other senior officials from MNRE,
IREDA and US-Exim Bank.
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.
US Exim Bank shall provide US $ 1
Billion medium and long-term guaranteed and/or direct dollar loans 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% 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 other detailed terms and conditions shall be decided upon
signing of MoU.
following sectors have identified as priority areas of clean energy investment cooperation
under this MoU:
Solar (utility scale PV and CSP including solar tower);
Hydro and any other Renewable Energy projects;
Other areas of cooperation as agreed.
IREDA ,a Central
Public Sector Undertaking functioning under the administrative control of
Ministry of New and Renewable Energy (MNRE), Government of India, 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
an agency of the United States of America, was established with the mandate,
among other things, to aid in the financing of creditworthy entities to
facilitate the export of goods and services of U.S. origin or manufacture.