IREDA Chairman Advocates MSMEs in Renewable Sector at COP28

Das reiterated IREDA's commitment to promoting environmental sustainability through increased MSME participation in the Renewable Energy sector.

December 11, 2023. By Abha Rustagi

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

Das reiterated IREDA's commitment to promoting environmental sustainability through increased MSME participation in the Renewable Energy sector. He highlighted the economic and environmental contributions of MSMEs, acknowledging their role as significant contributors to GDP growth. Currently, MSMEs constitute approximately 2 percent of IREDA's total loan assets in FY 22.

The CMD expressed IREDA's dedication to addressing challenges faced by MSMEs by providing accessible loan facilities. He acknowledged the obstacle of securing loans at reasonable interest rates for MSME entrepreneurs but highlighted IREDA's 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.

Drawing attention to a successful case study involving lending to e-rickshaws through Mufin Green Finance, Das shared IREDA's intervention to lower existing interest rates significantly. Leveraging the organization's track record of making previously unbankable sectors bankable, he expressed confidence in increasing MSME participation in the green energy sector.

Das underscored IREDA's commitment to encouraging farmers nationwide to reduce their carbon footprint through financing under the PM-KUSUM scheme.

In alignment with this commitment, IREDA recently launched its Retail Division, which swiftly sanctioned its first loan, amounting to INR 58 crores under KUSUM-B, contributing to the success of the PM-KUSUM scheme.

Tags:

International Solar Alliance

Renewable energy sector

MSMEs

COP-28

Dubai