IREDA to Provide Advisory Services to TANGEDCO for RE Projects

The Indian Renewable Energy Development Agency Ltd. (IREDA) has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Generation & Distribution Corporation Limited (TANGEDCO) for providing its technical expertise in developing renewable energy projects and fund raising.

The MoU was signed by Mr. Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA and Mr. Rajesh Lakhoni, CMD, TANGEDCO in the presence of Mr. M K Stalin, the Chief Minister of Tamil Nadu, and other dignitaries.

Under the MoU, IREDA will extend its technical expertise to TANGEDCO for renewable energy project development, bid process management, and implementation support. IREDA will also assist TANGEDCO in debt raising through developing financial models, providing assistance in understanding market instrument, underwriting services for the proposed debt requirement, and conducting pre-market surveys and road shows to generate interest amongst prospective investors.

TANGEDCO is planning for 20,000 MW of solar power projects, with adequate battery storage, 3,000 MW of pumped storage hydro electric project, and 2,000 MW of gas-based power plant for efficient renewable integration. The estimated loan required for the above projects is about Rs.1,32,500 crores approximately.

IREDA has stated that as the largest lender of the renewable energy sector, it is committed to play an important role in the fulfilment of the financial requirements for RE projects.

Last week, IREDA, the agency appointed by Ministry of New & Renewable Energy (MNRE) for the implementation of the CPSU Scheme Phase II, released a tentative list of bidders for building 5000 MW capacity of renewable energy. The list comprises seven bidders: energy conglomerate NTPC Limited for 2500 MW, Solar Energy Corporation of India Ltd. (SECI) for 1200 MW, state-owned hydropower board NHPC for 1000 MW, Satluj Jal Vidyut Nigam Ltd. (SJVN) for 1000 MW, fossil fuel electric power generation company NLC India Limited for 510 MW, Indian Railway Construction Limited (IRCON) for 500 MW, and state-owned Indian Oil Corporation for 250 MW.