IREDA, PNB collaborate to enhance financing for renewable energy projects in India
Notable because
India requires USD 200 billion to meet its 2030 RE ambitions for generating capacity alone. Collaborations which pave the way for activities such as co-lending can help unlock capital at scale. Furthermore, in particular, if the MoU allows IREDA and PNB to invest in bonds issued by each other, it could allow them to seamlessly shore up their liabilities sides in case capital is urgently required for new lending for RE.
What to look out for in the months ahead
IREDA, a dedicated pure-play green lender has entered into similar MoUs with many other financial institutions, pointing to the urgent need to catalyse green finance flows for India’s RE sector. How soon will it be before the domestic debt capital market is also unlocked to complement India’s traditional banking system–led financing for RE?