French development financial institution extending $136M to IREDA to back clean energy projects

State-run Indian Renewable Energy Development Agency (IREDA) will receive a line of credit of €100 million ($136 million) from French international development financial institution Agence Francaise de Developpement (AFD), to help finance renewable energy and energy efficiency projects in the country, according to a public statement.

The credit is being extended for a tenure of 15 years without any guarantee from the Indian government.

IREDA chairman K S Popli signed a memorandum of understanding with Aude Flogny, regional director of AFD of France for the agreement.

The agreement signed between the two entities will help in supporting the government's focus on a low carbon growth strategy for power generation in India, the statement said.

IREDA is a dedicated financing institution for renewable energy projects under the Ministry of New and Renewable Energy and has till date disbursed more than Rs 14,550 crore for several projects. It has total loan portfolio of over Rs 8,200 crore. IREDA has been raising resources from various bilateral / multilateral agencies as also from domestic sources through both taxable and tax-free bonds for providing long term finance.

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