Indian Renewable Energy Development Agency Limited (IREDA) and Punjab National Bank (PNB) are seeking to strengthen their partnership in renewable energy financing, IREDA announced on September 24.

Pradip Kumar Das, chairman and managing director of IREDA, met with Atul Kumar Goel, MD and CEO of PNB, to discuss the matter. IREDA and PNB have already signed a memorandum of understanding to jointly finance renewable energy projects.

During the meeting, both leaders emphasised the importance of their organisations playing a greater role in addressing the growing financing needs of the renewable energy sector. They discussed strategies to enhance their collaboration, aligning with the Indian government's vision of achieving ambitious renewable energy targets.

The talks also included potential lending by PNB to IREDA at more favourable rates, as well as joint lending for large-scale renewable energy projects to ensure more competitive financing for the sector.

Das said that the Indian renewable energy sector is growing at an unprecedented rate, and the demand for financing is expanding rapidly.

IREDA is also in discussions with India’s leading bank, the State Bank of India (SBI), to develop a partnership in the renewable energy sector. The two parties met earlier this month in Mumbai to explore potential joint initiatives aimed at accelerating the growth of renewable energy in India.

In addition, IREDA recently achieved a significant milestone by securing its first international credit rating, which the company announced last week. It was assigned a 'BBB-' long-term and 'A-3' short-term issuer credit rating, with a stable outlook, by S&P Global Ratings. This rating is expected to aid IREDA’s expansion into international markets, providing access to more favourable funding options and supporting its borrowing strategy.