The two sides signed a memorandum of understanding for joint financing of renewable energy, energy efficiency and conservation, and medium and large hydro projects, the Ministry of New and Renewable Energy said Wednesday.

Shyam Wadhera, director-projects, PFC, and Debashish Majumdar, chairman and managing director, IREDA, signed the pact.

"PFC and IREDA shall cooperate to leverage their respective strengths and competencies built over the years for facilitating financing of these sectors for mutual benefit," a PFC statement said.

Currently, the installed capacity of electric power from renewable energy sources in the country is 10,209 megawatts.