The Indian Renewable Energy Development Agency Limited (IREDA), which is the financing institution under the Ministry of New and Renewable Energy has recently signed the Master Cooperation Agreement as the 27th signatory with the International Finance Corporation, a member agency of the World Bank Group, in order to partner together for facilitating project financing for renewable energy projects in India and for standardizing the process followed by Indian lenders for the purpose of co-financing renewable energy projects along with the International Finance Corporation.
The main objective of the collaboration drawn up between the IREDA and the International Finance Corporation by way of the Master Cooperation Agreement is to make available Indian Rupee financing in shorter timeframes and to ensure reduction of financing costs.
The Master Cooperation Agreement created in 2009 was envisaged to provide project financing for infrastructure projects globally and till date, the various signatories to the Master Cooperation Agreement have co-invested in excess of US$3 Billion along with the International Finance Corporation in order to finance infrastructure projects globally and the collaboration between the IREDA and the International Finance Corporation drawn up by way of IREDA signing the Master Cooperation Agreement is envisaged play a catalytic role in development of the renewable energy projects in India.
PTC (India) Financial Services Limited, a non-banking finance company promoted by PTC India Limited (which was also categorized as an infrastructure finance company by Reserve Bank of India) was the first Indian entity and the 26th entity globally to be a signatory to the Master Cooperation Agreement of the International Finance Corporation.
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