Dual Financing Approach being adopted to Elevate MSMEs' Contribution in Renewable Energy Transition: IREDA CMD at COP28

Posted under: MSME
Date: 2023-12-11
Dual Financing Approach being adopted to Elevate MSMEs' Contribution in Renewable Energy Transition: IREDA CMD at COP28

Chairman and Managing Director of the Indian Renewable Energy Development Agency Limited, Shri Pradip Kumar Das, has highlighted the significance of lending to MSMEs in the renewable energy sector, emphasizing both its economic and environmental contributions. He also underlined that the agriculture sector and MSMEs are the largest contributors to GDP growth. CMD, IREDA, acknowledged that a significant obstacle for MSME entrepreneurs is securing loans at reasonable interest rates. However, IREDA has made substantial progress in improving the ""Ease of Doing Business."" This includes the implementation of faceless loan sanctions and disbursements, a reduction in the documentation involved in the loan sanction and disbursement cycle. Highlighting a successful case study involving lending to e-rickshaws through Mufin Green Finance, Shri Das shared that IREDA intervened to lower existing interest rates ranging from 30%–36% to 18%.

Read more at: pib.gov.in