The Indian Renewable Energy Development Agency (IREDA) said that it plans to increase the participation of Micro, Small and Medium Enterprises (MSMEs) in the green energy sector by offering more loans.
Speaking at a forum recently, IREDA Chairman and Managing Director, Pradip Kumar Das, said that MSMEs represent only 1.86 percent of the company’s total loan assets worth Rs 33,884. The CMD emphasized that the target of achieving 50 GW of renewable energy capacity by 2030 cannot be achieved without the active participation of MSMEs.
IREDA plans to address this by enabling them to increase their participation in the renewable energy sector. Currently, a barrier for MSMEs is the inability to procure loans at reasonable interest rates. According to Das, on its part, IREDA has improved the ease of doing business through faceless loan sanctions and disbursements, increase geographical footprint in the country and reduction in loan sanction, documentation and disbursement cycle.