Tuesday, 4 March 2014

European Investment Bank (EIB) and IREDA sign Euro 200 million Agreement

European Investment Bank (EIB)
The European Investment Bank (EIB) has sanctioned a Line of Credit (LoC) of Euro 200 million to M/s Indian Renewable Energy Development Agency Ltd. (IREDA) to be utilized for financing Renewable Energy and Energy Efficiency projects in India. The total loan period is 20 years. The LoC is secured by a sovereign guarantee from Government of India.

Agreement for availing the LoC of Euro 200 million from EIB, was signed by Shri Debashish Majumdar, Chairman and Managing Director, IREDA and Mrs. Magdalena Alvarez Arza, Vice President, EIB in New Delhi today in the presence of Dr. Farooq Abdullah, Union Minister for New and Renewable Energy.

Speaking on this occasion, Mrs. Magdalena Alvarez Arza, Vice President, EIB said that European Investment Bank started funding Indian project in 1993 and in this period of two decades, India has now become the second largest recipient of EIB fund.

Dr. Satish B Agnihotri, Secretary, MNRE said that this LOC of Euro 200 million will facilitate in IREDA’s financing of existing and new projects of renewable energy.

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 signed today 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.

IREDA is the dedicated financing arm of the Ministry of New and Renewable Energy and has been spearheading the growth of renewable energy in the country.

 It has cumulatively financed over 2000 projects corresponding to a financial value of about Rs.22,500 crores. IREDA has been raising resources from various bilateral / multilateral agencies as also from domestic sources through both taxable and tax-free bonds. 

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