Mumbai: Tata Cleantech Capital Limited (TCCL), a Joint Venture of Tata Capital Limited and IFC Washington (World Bank Group) has signed a Memorandum of Understanding (MoU) with Indian Renewable Energy Development Agency (IREDA) to promote the cause of Renewable Energy in India. The MoU was signed by Mr. Praveen P Kadle, Managing Director and CEO, Tata Capital and Mr. K.S. Popli, Chairman and Managing Director, IREDA.
Both the organisations are specialist Cleantech Financing Institutions deeply invested in their efforts to promote development of renewable energy in India. This collaboration will help both the institutions share opportunities, distribute risks and leverage their respective underwriting capacities. While this arrangement will help TCCL to syndicate and down-sell transactions co-underwritten and co-financed with IREDA, the latter will be able to churn its portfolio and reach its objective of a ‘Development Institution’ by extending loans to newer projects and newer customers.
The association between TCCL and IREDA will further help in consortium financing. Both the institutions aim to participate in consortiums led by each other. With co-financing transactions, there will be greater alignment of key terms between the two organisations and this will help in faster closure of consortium documentation.
Speaking on the occasion, Mr. Praveen P Kadle, Managing Director and CEO, Tata Capital said, “Tata Cleantech Capital is excited to partner with IREDA to help achieve India’s Clean Energy Target of 175 GW by 2022. This collaboration will bring the two Institutions together towards joint development of innovative financial mechanisms, co-underwriting and co-financing facilities, syndication and social and environment management of projects being undertaken.”
While signing the MoU, Mr. K.S. Popli, Chairman and Managing Director, IREDA said, “It is well-known that India will have to look beyond coal to meet its growing power demand. IREDA is committed towards development and growth of Clean Energy Sector in India. Given our common objectives, this collaboration with Tata Cleantech Capital Limited will help combine skills and capacities of two organisations in developing new and innovative products and sharing of best practices.”
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