India and US sign MOU for cooperation in Clean Energy Investments
Indian Renewable Energy Development Agency Ltd (IREDA) & US-Exim Bank Signed Memorandum of Understanding (MOU) with respect to cooperation on Clean Energy Investment. The US Exim Bank will provide US$ 1 Billion Medium and Long-Term Loans under this collaboration between IREDA and US-Exim Bank.
A MOU has been signed between IREDA and US Exim Bank with respect to cooperation on clean energy investment. This MoU is intended to establish a framework for cooperation in the financing of creditworthy entities for renewable energy projects and to facilitate the export of goods and services of U.S. origin or manufacture in India and various forms of collaboration between the IREDA & US-Exim Bank.
The Salient features of the MOU are enumerated below :
- US Exim Bank shall provide US$1bn medium and long-term guaranteed and/or direct dollar loans to finance U.S. technologies, products and services utilized during commercial development activities within the clean energy sector by IREDA. The proposed credit facility carries no specific commitment on the part of IREDA and will depend on the import of US equipment to India and attractiveness of credit facility to the project developers in India . This US Exim Bank facility will be available for financing of imported US equipment, and in addition to financing of 30% of domestic component.
- With the above proposed facility, IREDA will be providing a new window of credit facility to developers who would like to avail this facility to meet their specific requirement. The credit facility will be available for a repayment period of 18 years with the same fixed rate of interest. The other detailed terms and conditions shall be decided upon signing of MoU.
- The following sectors have been identified as priority areas of clean energy investment cooperation under this MoU:
- Solar (utility scale PV and CSP including solar tower)
- Hydro and any other Renewable Energy projects