The Indian Renewable Energy Development Agency Ltd. (IREDA) signed an MoU with Tamil Nadu Generation & Distribution Corporation Limited (TANGEDCO) on Monday (06/09/2021).
The primary objective behind signing the MOU between IREDA and TANGEDCO is to provide technical expertise in developing Renewable Energy projects and fund raising.
– About the MOU:
The MoU was signed by Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA and Rajesh Lakhoni, CMD, TANGEDCO in the presence of Tamil Nadu Chief Minister M K Stalin among other dignitaries.
Under the MoU, IREDA will extend technical expertise & support to TANGEDCO for Renewable energy project development, to bid process management, and provide implementation support.
IREDA will also assist TANGEDCO in debt raising by developing financial models, assistance in the understanding market instrument, underwriting services for the proposed debt requirement, conducting pre-market surveys, and road shows to evoke interest amongst potential investors.
Further, under the MOU, TANGEDCO is planning to undertake 20,000 MW of Solar Power Project, with adequate Battery Storage, 3,000 MW of Pumped Storage Hydro Electric Project, and 2,000 MW of Gas Based Power Plant for efficient Renewable integration. The estimated loan required for the above projects is about Rs.1,32,500 Crores approximately.
The MOU between IREDA & TANGEDCO has been signed keeping in mind multiple objectives, enlisted below:
– IREDA to aid TANGEDCO in debt raising through developing financial models
– Assistance in understanding market instrument
– Underwriting services for the proposed debt requirement, in addition to conducting pre-market surveys and road shows to evoke the interest of potential investors.
– About IREDA:
IREDA is a (Category – I) Government of India Mini Ratna under the administrative control of the Ministry of New and Renewable Energy (MNRE).
It is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 engaged in promoting, developing & extending financial assistance for setting up projects relating to new and renewable sources of energy.
It is the largest lender of funds for the Indian Renewable Energy sector. Its has a significant role to play in the fulfillment of the financial requirements for RE projects.
How it’ll enable India’s RE-sector growth?
The signing of the MOU between IREDA & TANGEDCO will enable India’s RE-sector growth by contributing to reducing CO2 emissions in the state, create employment opportunities and give the required impetus to the renewable energy sector.
Further, under initiatives in line with the Satat scheme launched by the Central government, the MOU will have a two-fold benefit of solving the waste problem of Karnataka and generating clean fuel with the setting up of a 2,000 MW Gas Based Power Plant.