The Indian Renewable Energy Development Agency Limited (IREDA) has taken a significant step towards bolstering its commitment to sustainable development with the launch of its retail division. This strategic move, operational since December 5, 2023, aims to intensify efforts in providing loans to beneficiaries of the PM-KUSUM scheme, Rooftop Solar initiatives, and other Business-to-Consumer (B2C) sectors.
Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, made this announcement during the Leaders’ Dialogue on “Actioning Solutions for Global Sustainable Development and Governance of Resources” organized by the Council on Energy, Environment and Water (CEEW) and Confederation of Indian Industry (CII) as part of COP28 in Dubai on December 7, 2023.
Shortly after its inauguration, IREDA’s Retail division swiftly approved its maiden loan, totaling Rs. 58 crores under KUSUM-B. This underscores IREDA’s dedication to emerging as the preferred financial partner in new segments, mirroring its success in other renewable energy sectors.
In a proactive move towards sustainable investing, Shri Pradip Kumar Das proposed allocating 1%-2% of Assets Under Management (AUM) for domestic pension and insurance funds into Renewable Energy (RE) bonds. This strategic step aims to deepen bond markets, fostering increased global and local investments in the renewable energy sector.
During the COP28 event in Dubai, Mr Pradip Kumar Das participated in two panel discussions. The first, organized by the Asian Development Bank, focused on “Scaling Up Climate Finance to Meet India’s Energy Transition Goals.” The second, jointly organized by the International Solar Alliance and CII, addressed “Financing Industry Transitions in Emerging Markets and Developing Economies.”
In the discussion on “Scaling Up Climate Finance to Meet India’s Energy Transition Goals,” Shri Das highlighted the necessity of establishing a comprehensive green taxonomy covering the entire spectrum of Renewable Energy and green technology-based investments. This, he emphasized, would enhance transparency in Renewable Energy sector issuances, attracting investors committed to sustainability.
In the session on “Financing Industry Transitions in Emerging Markets and Developing Economies,” Shri Das underscored the significance of finding and financing low-emission solutions to meet the rising energy demand. Recognizing the evolving green energy landscape, he emphasized the need for unique solutions across both traditional and emerging sectors. Mr Das advocated for leveraging climate funds to support low-cost funding, improve risk-adjusted returns, and mobilize private capital on a larger scale. He argued that this approach would enable low-cost funds, accommodate margins for Non-Performing Assets (NPAs), and mitigate the impact of rising interest rates.
IREDA’s strategic initiatives mark a pivotal moment in the pursuit of sustainable development and the transition to cleaner, greener energy solutions in India.