Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
mains Test Series 2018
IREDA & US-Exim Bank Sign MoU for Cooperation on Clean Energy Investment
Dec 19, 2014

A Memorandum of Understanding (MOU) has been signed between Indian Renewable Energy Development Agency Ltd (IREDA) and US Exim Bank regarding 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.

US Exim Bank shall provide 1 billion dollar 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 percent 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 following sectors have identified as priority areas of clean energy investment cooperation under this MoU:

  • Solar (utility scale PV and CSP including solar tower)

  • Wind

  • Hydro and any other Renewable Energy projects

  • Waste-to-Energy

  • Other areas of cooperation as agreed


IREDA is a Central Public Sector Undertaking functioning under the administrative control of Ministry of New and Renewable Energy (MNRE), Government of India, is a developmental financial institution in the field of Renewable Energy and provides financial assistance in the form of term loans to the eligible project developers for setting up new and renewable sources of energy and energy efficiency projects.

US-Exim Bank is an agency of the United States of America, was established with the mandate, among other things, to aid in the financing of creditworthy entities to facilitate the export of goods and services of U.S. origin or manufacture.

 


Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.

http://www.drishtiias.com/upsc-current-affairs-article-IREDA--US-Exim-Bank-Sign-MoU-for-Cooperation-on-Clean-Energy-Investment