IREDA to Support TANGEDCO in Raising Funds, Developing Renewable Energy Projects

Power sector major lender Indian Renewable Energy Development Agency Ltd (IREDA) will provide its technical expertise to Tamil Nadu Generation & Distribution Corporation Ltd (TANGEDCO) in developing renewable energy projects and raising funds for them.

In this regard, a Memorandum of Understanding (MoU) was signed between Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA and Rajesh Lakhoni, CMD, TANGEDCO in the presence of M K Stalin, the Chief Minister of Tamil Nadu, and other dignitaries.

As per the agreement, IREDA will extend its technical expertise to TANGEDCO for renewable energy project development, bid process management, and implementation support.

Besides, the state-owned Non-Banking Financial Institution (NBFC) will also assist TANGEDCO in debt raising through developing financial models, assistance in understanding market instruments, underwriting services for the proposed debt requirement, and conducting pre-market surveys, roadshows to generate interest amongst prospective investors.

The move is in line with TANGEDCO’s aim for developing 20 GW of solar power projects with adequate battery storage, 3 GW of pumped storage hydroelectric projects, and 2 GW of gas-based power plants for efficient renewable integration.

Meanwhile, the loan required for these projects is estimated at about Rs 1,32,500 crore.