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Bank of Baroda Signs MoU with Tata Power Renewable Energy Limited to Finance MSME Solar Projects.

Banking & Finance | Dated: 30 Sep 2025

On September 26, 2025, Bank of Baroda (BOB) signed a Memorandum of Understanding (MoU) with Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, to provide financial support to Micro, Small, and Medium Enterprises (MSMEs) and Commercial & Industrial (C&I) customers for the adoption of solar energy. The collaboration aims to enhance BOB’s lending capabilities, expand solar adoption, and increase efficiency in India’s bullion and renewable energy markets.

🎯 Key Highlights:

  • - The MoU involves BOB and TPREL, with the primary objective to finance MSME solar projects. This initiative targets rooftop solar and renewable energy installations for commercial and industrial customers, promoting clean energy adoption and sustainability in India.
  • - Under this MoU, BOB will offer collateral-free loans up to ₹10 crores for solar projects. Loans will have flexible repayment tenure up to 120 months (10 years), with interest rates starting at 7.75%, via TPREL or its authorized partners for projects up to 10 Megawatt (MW) capacity.
  • - The MoU was signed by Madhur Kumar, Chief General Manager (CGM), MSME Banking, Co-Lending & Supply Chain Finance (SCF), BOB, and Shivram Bikkina, Chief of Rooftop Solar Business & Electronic Vehicle (EV) Charging Business, TPREL. The International Financial Services Centres Authority (IFSCA) has approved BOB to operate as Trading-Cum-Clearing Member (TCM) on the India International Bullion Exchange IFSC Limited (IIBX) at Gujarat International Finance Tec-City (GIFT City).

💡 Other Important Facts:

  • (i) As of August 2025, TPREL has completed over 2.49 lakh rooftop solar installations, achieving a cumulative capacity exceeding 3.6 Global Warming Potential (GWP). The collaboration allows BOB to directly finance, execute, and settle solar projects efficiently for MSME and C&I clients.
  • (ii) With this MoU, BOB becomes the second Public Sector Bank (PSB) after the State Bank of India (SBI) to receive TCM status, enabling it to access international and domestic clients for gold and silver contracts on IIBX.
  • (iii) India’s first international bullion exchange, IIBX, was established in July 2022 in Gandhinagar, Gujarat, by the Government of India (GOI). It aims to provide a transparent, efficient, and globally competitive platform for bullion trading, supporting international investments and domestic market liquidity.

📚 Test Your Knowledge:

Recently, which bank signed an MoU with Tata Power Renewable Energy Limited (TPREL) to finance MSME solar projects?

Correct Answer: Bank of Baroda

🚀 Quick Recap:

About Bank of Baroda (BOB)

  • Chief Executive Officer (CEO) : Debadatta Chand
  • Headquarters : Vadodara, Gujarat