In a landmark session at COP 28 organized by the International Solar Alliance and CII, Pradip Kumar Das, Chairman & Managing Director of the Indian Renewable Energy Development Agency Limited (IREDA), unveiled a pioneering dual financing approach aimed at elevating the Micro, Small & Medium Enterprises (MSMEs) contribution to the Renewable Energy sector. The session, titled “Pioneering Sustainability in MSMEs: Envisioning Global Growth and Local Impact,” shed light on the economic and environmental significance of financing MSMEs in the green energy landscape.
Das emphasized IREDA’s commitment to promoting environmental sustainability by increasing the involvement of MSMEs in the Renewable Sector through accessible loan facilities. Currently constituting about 2% of the company’s total loan assets in FY 22, MSMEs play a pivotal role in driving environmental sustainability, contributing significantly to GDP growth alongside the Agriculture sector.
Addressing the challenges faced by MSME entrepreneurs, Das acknowledged the hurdles in securing loans at reasonable interest rates. However, he highlighted IREDA’s substantial 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 success story involving lending to e-rickshaws through Mufin Green Finance, Das revealed that IREDA intervened to lower interest rates from 30% – 36% to a more sustainable 18%. Leveraging its expertise in making previously unbankable sectors bankable, Das expressed confidence that IREDA’s initiatives would substantially increase MSME participation in the green energy sector.
The CMD also underscored IREDA’s unwavering commitment to encouraging farmers nationwide to reduce their carbon footprint through financing under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme. In a strategic move to further support MSMEs and contribute to the success of PM-KUSUM, IREDA recently launched its Retail Division. Shortly after its establishment, the Retail Division sanctioned its first loan, amounting to ₹58 crores under KUSUM-B.
