New Delhi: Indian Renewable Energy Development Agency Limited (IREDA), Chairman and Managing Director Pradip Kumar Das emphasized a dual financing approach to boost the participation of Micro, Small & Medium Enterprises (MSMEs) in the renewable energy transition. Speaking at a session organized by the International Solar Alliance and CII, Das highlighted IREDA’s commitment to increasing MSME involvement through innovative loan facilities.
The CMD outlined that MSMEs currently constitute about 2% of IREDA’s total loan assets as of FY 22 and underscored their significant role in India’s GDP growth, particularly in the Agriculture Sector. To address the challenges faced by MSMEs in accessing finance, IREDA has streamlined its loan sanction and disbursement processes, moving towards a faceless and more efficient system, and expanded its reach across the country.
Das cited a successful case study where IREDA intervened to reduce interest rates for e-rickshaws financed through Mufin Green Finance, bringing them down from 30%-36% to 18%. This initiative is a testament to IREDA’s strategy to make previously unbankable sectors more accessible for MSMEs, fostering their growth in the green energy sector.
Moreover, Das reiterated IREDA’s strong commitment to aiding farmers in reducing their carbon footprint through financing under the PM-KUSUM scheme. In line with this, the agency’s recently established Retail Division has already sanctioned its first loan of Rs 58 crore under KUSUM-B, demonstrating IREDA’s proactive approach in supporting MSMEs and contributing to the success of renewable energy initiatives in India.
