IREDA’s Dual Financing Strategy Propels MSMEs in Renewable Energy Transition: Insights from CMD at COP28

In a session themed “Pioneering Sustainability in MSMEs: Envisioning Global Growth and Local Impact,” organized by the International Solar Alliance and CII as part of COP 28, Shri Pradip Kumar Das, the Chairman & Managing Director of the Indian Renewable Energy Development Agency Limited (IREDA), underscored the importance of lending to Micro, Small & Medium Enterprises (MSMEs) in the Renewable Energy sector. Emphasizing both the economic and environmental contributions of such initiatives, he reiterated IREDA’s commitment to fostering environmental sustainability.

During the event, Shri Das highlighted IREDA’s dedication to promoting sustainability by facilitating increased participation of MSMEs in the Renewable Sector through accessible loan facilities. He stressed the pivotal role played by MSMEs in environmental sustainability, revealing that they currently constitute approximately 2% of the company’s total loan assets for FY 22.

Acknowledging the challenges faced by MSME entrepreneurs, especially in securing loans at reasonable interest rates, Shri Das informed about IREDA’s significant progress in improving the “Ease of Doing Business.” This includes the implementation of faceless loan sanctions and disbursements, reduction in documentation, and an expanded geographical reach across the country.

Sharing a successful case study involving lending to e-rickshaws through Mufin Green Finance, Shri Das disclosed IREDA’s intervention in lowering interest rates from 30%-36% to 18%. He expressed confidence in the company’s initiatives to boost MSME participation in the green energy sector.

Highlighting IREDA’s unwavering commitment to encouraging farmers nationwide to reduce their carbon footprint through financing under the PM-KUSUM scheme, Shri Das announced the recent launch of IREDA’s Retail Division. The division sanctioned its first loan, amounting to Rs. 58 crores under KUSUM-B, showcasing a proactive move to support MSMEs and contribute to the success of the PM-KUSUM scheme.