IREDA emphasized the importance of dual financing to Micro, Small, and Medium-Sized Enterprises or MSMEs in the renewable energy sector during a COP 28 session.

Mr Pradip Kumar Das, Chairman and Managing Director of the Indian Renewable Energy Development Agency Limited (IREDA) was speaking at a session on “Pioneering Sustainability in MSMEs: Envisioning Global Growth and Local Impact.” CII and the International Solar Alliance organized the session.

According to the CMD, MSMEs accounted for 2% of the company’s total loan assets in FY 22, underscoring their vital role in environmental sustainability.

The organization is committed to enhancing MSMEs’ involvement in the renewable energy sector and promoting sustainable practices through accessible loan facilities. He said that the bulk of GDP growth is accounted for by MSMEs and the agriculture sector.

Mr Das highlighted Mufin Green Finance’s successful case study of lending to e-rickshaws, highlighting IREDA’s intervention to reduce interest rates and its potential to boost MSME involvement in the green energy sector.

He also highlighted IREDA’s commitment to helping farmers nationwide reduce their carbon footprint by offering financial support through the PM-KUSUM program.

It must be noted that IREDA recently established its Retail Division to assist MSMEs and contribute to the success of the PM-KUSUM program. Shortly after its founding, the Retail Division approved its first loan, under KUSUM-B, for a total of Rs. 58 crores.