New Delhi, India, April 29, 2015:
IFC, a member of the World Bank Group, and the Indian Renewable Energy Development Agency Ltd. (IREDA) will partner to provide much-needed infrastructure financing for renewable energy projects in India, which, in turn, will help boost growth and create jobs.
IREDA, the financing arm of the Ministry of New and Renewable Energy, is now the twenty-seventh development finance institution globally and the second in India, to sign IFC’s master cooperation agreement. This collaboration will help standardize steps that lenders take when co-financing projects with IFC. The ultimate aim is to make local currency financing available in shorter time-frames and reduce financing costs for lenders and borrowers.
“The partnership will help IREDA increase its portfolio in financing renewable energy projects, to support the government of India’s plans to establish up to 175 gigawatts of renewable energy projects over the next seven years,” said K. S. Popli, Chairman and Managing Director, IREDA. “Our clients will have access to global best practices including IFC’s environmental and social guidelines.”
IFC’s master cooperation agreement was created in 2009 in response to calls for finance institutions to collaborate more closely to help meet shortfalls in private sector financing during the global financial crisis.
“Enhancing India’s power generation capacity is critical to expand access to electricity and support domestic manufacturing and agribusiness sectors,” said Vivek Pathak, IFC’s Director for Asia-Pacific. “Partnering with IREDA will enable developers to speedily commission renewable energy projects while having a positive environmental footprint and creating jobs.”
Since the master cooperation agreement was created, signatories have co-invested more than $3 billion with IFC to support private sector development across the world.
“IFC and IREDA will play a catalytic role in private sector development by providing long-term risk capital where it is needed most,” said Hyun Chan Cho, IFC’s Head for Infrastructure and Natural Resources – Asia Pacific. “With this partnership, we can respond more swiftly to private sector financing needs and boost job creation.”
About IREDA
IREDA is the dedicated financing arm of the Ministry of New and Renewable Energy that supports the growth of renewable energy in the country. Since its inception, it has disbursed more than Indian rupees 169.4 billion in financing to the sector (approximately US$2.8 billion).
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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