The MOU aims to set up a framework for cooperation in the financing of creditworthy entities for renewable energy projects.
It will facilitate the export of goods and services of US origin or manufacture in India and several forms of collaboration between the IREDA & US Exim Bank.
Exim Bank will provide $1bn medium and long-term guaranteed and/or direct dollar loans to finance US technologies, products and services for clean energy development by IREDA.
Renewable energy developers in India working with IREDA can avail the credit facility for importing US equipment in the sector.
The credit facility will also be available for financing 30% of domestically manufactured parts.
The priority areas of clean energy investment cooperation under the MOU include solar, wind, hydro and any other renewable energy projects and waste to energy.
Ex-Im Bank chairman Fred Hochberg said: "This Memorandum of Understanding will reinforce the strong ties that America and India already share, create good-paying jobs on both of our shores, and further invigorate America’s clean energy industry while equipping India to meet its own ambitious energy goals."
The financing from Ex-Im Bank will support the Indian Government’s recently-announced goal of providing 24-hour electricity for its population by 2019.
Ex-Im Bank has authorized $353.4m for US renewable energy exports to India since 2009.
Image: IREDA and Ex-Im Bank sign MOU with respect to cooperation on clean energy investment. Photo: Courtesy of Indian Renewable Energy Development Agency.
