At the COP 28 session titled “Pioneering Sustainability in MSMEs: Envisioning Global Growth and Local Impact,” held in Dubai the Chairman & Managing Director of the Indian Renewable Energy Development Agency Limited (IREDA), emphasized the pivotal role of Micro, Small & Medium Enterprises (MSMEs) in the Renewable Energy sector. A press release on the COP 28 was issued on December 10, 2023.
During the event organized by the International Solar Alliance and CII, the Chairman & Managing Director reiterated IREDA’s commitment to fostering environmental sustainability. He emphasized the economic and environmental significance of lending to MSMEs within the Renewable Energy landscape.
The Chairman & Managing Director also highlighted that MSMEs currently constitute about 2% of IREDA’s total loan assets in the fiscal year 2022. He stressed the importance of enhancing MSME participation in the Renewable Energy sector, acknowledging their substantial contributions to GDP growth, particularly within the Agriculture Sector.
Recognizing the challenges faced by MSME entrepreneurs, especially in securing loans at reasonable interest rates, he outlined IREDA’s strides in improving the “Ease of Doing Business.” This includes implementing faceless loan sanctions, reducing documentation in loan processes, and expanding geographical accessibility across the nation.
Sharing a success story involving lending to e-rickshaws through Mufin Green Finance, he also disclosed that IREDA intervened to significantly lower interest rates from 30%-36% to 18%. Leveraging their history of making previously unbankable sectors bankable, he expressed confidence in increasing MSME involvement in the green energy sector.
Additionally, he underscored IREDA’s unwavering commitment to supporting farmers nationwide in reducing their carbon footprint through financing under the PM-KUSUM scheme. In line with this commitment, IREDA recently launched its Retail Division, sanctioning its inaugural loan of Rs. 58 crores under KUSUM-B, aiming to boost MSMEs and contribute to the scheme’s success.
