IREDA Chairman Emphasizes MSMEs' Vital Role in Renewable Energy Sector at COP 28

Pradip Kumar Das, Chairman & Managing Director of the Indian Renewable Energy Development Agency Limited (IREDA), shed light on the pivotal role of Micro, Small & Medium Enterprises (MSMEs) in the Renewable Energy sector during a session on ‘Pioneering Sustainability in MSMEs: Envisioning Global Growth and Local Impact’ organized by the International Solar Alliance and CII as part of COP 28.

Addressing the audience, Mr Das reiterated IREDA's unwavering commitment to promoting environmental sustainability through increased participation of MSMEs in the Renewable Sector. He emphasized the economic and environmental contributions of MSMEs and stated that, currently, they constitute approximately 2% of IREDA's total loan assets in FY 22.

Recognizing the challenges faced by MSME entrepreneurs, Mr Das acknowledged the significance of providing loans at reasonable interest rates. IREDA has made significant strides in enhancing the 'Ease of Doing Business' by implementing faceless loan sanctions and disbursements, reducing documentation, and expanding its geographical reach across the country.

Das shared a success story involving lending to e-rickshaws through Mufin Green Finance, where IREDA intervened to lower interest rates from 30%-36% to 18%. Leveraging its track record of making previously unbankable sectors bankable, he expressed confidence that IREDA's initiatives would encourage increased MSME participation in the green energy sector.

Highlighting IREDA's commitment to environmental sustainability, Mr Das underscored the agency's dedication to encouraging farmers nationwide to reduce their carbon footprint through financing under the PM-KUSUM scheme.

In a proactive move to support MSMEs and contribute to the success of the PM-KUSUM scheme, IREDA recently launched its Retail Division, which has already sanctioned its first loan amounting to Rs. 58 crores under KUSUM-B.