IREDA and Punjab National Bank signed a MoU to Co-Finance Renewable Energy Projects

Current Context: The Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) signed a Memorandum of Understanding (MoU) on February 19, 2024 in New Delhi.

• This agreement aims to advance renewable energy initiatives across India.
• The MoU paves the way for joint efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects.
• It includes provisions for joint lending, loan syndication and underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and working towards competitive terms of sanction, including pricing on IREDA borrowings.
• Through this collaboration, IREDA and PNB can also invest in bonds issued by either organization.
• The MoU was signed by General Manager of IREDA Dr. R. C. Sharma, and Chief General Manager of PNB Shri Rajeeva.
• This strategic partnership is a significant step in accelerating the growth of renewable energy in India.
• It aligns with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.

Question:

Q.1 What is the main aim of the MoU between IREDA and PNB?
a. To advance nuclear energy initiatives across India
b. To advance renewable energy initiatives across India
c. To advance coal energy initiatives across India
d. To advance hydro energy initiatives across India