TCCL and IREDA sign pact for RE projects

Tata Cleantech Capital(TCCL) and Indian Renewable Energy Development Agency (IREDA), have come into an agreement where they would collectively develop a financial mechanism innovative. Through this innovative they are aiming at customers and new projects in the renewable energy space.

With regard to the agreement, KS Popli, CMD, IREDA said, “The arrangement will help TCCL (Tata Cleantech Capital) syndicate to down sell transactions co-underwritten and co- financed with IREDA, while we will be able to churn our portfolio and reach the objective of a development institution by extending loans to newer projects and newer customers.”

He also added that this memorandum of understanding will help distribute risk, leverage the underwriting capacities, and share opportunities. Another point to be noted is that both organizations are specialized cleantech financing companies, who have shown their efforts in promoting the renewable energy development in India.

CEO & Managing Director of Tata Capital, Praveen P Kadle said that the partnership between TCCL and IREDA will help India in achieving a target of 175 GW of clean energy by 2022.

TCCL is a joint venture between International Finance corporation (IFC) and Tata Capital.

Kadle also added that, “This collaboration will bring the 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.”

He also said that TCCL will be able to get experience on the renewable energy sector of India from IREDA, in return it would gain international experience and global practices from its joint venture with IFC.

TCCL and IRDEA consortium will also help in combined financing. With the co-financing agenda on the lines, there will be greater cooperation of the main terms between the organizations, which would aid in the speedy closure of the consortium documentation.

However, other details like number of projects or funding are still not decided.

Popli pointed out that India should look far beyond coal for meeting its growing demand for power and IREDA is very much committed to the growth and development of clean energy sector in the country. He added that, “Given our common objectives, this collaboration with TCCL will help combine skills and capacities of the two organizations in developing new and innovative products and sharing of best practices.”