IREDA to increase MSME participation in renewable energy by offering more loans, CFO News, ETCFO
Addressing the conclave organized by MSME Business Forum India, Minister of State for Finance Bhagwat Karad praised the efforts of IREDA for the overall development of the renewable energy sector.
Das said that while MSMEs are only 1.86% of the company’s total loan assets of Rs 33,884 crore (as of May 2022), IREDA is trying to address MSME issues to increase their participation in the renewable energy (RE) sector.
He pointed out that the target of 500 GW of renewable energy capacity by 2030 cannot be achieved without the considerable participation of MSMEs, and therefore their efforts will be a crucial driver of Aatmnirbhar Bharat.
He further said that he was fully confident that India would easily achieve the target of 50% energy from non-fossil fuels as well as the 500 GW renewable energy capacity before the 2030 deadline. set by Prime Minister Narendra Modi.
A major obstacle for MSME entrepreneurs is the inability to obtain loans at reasonable interest rates, but IREDA has significantly improved the ease of doing business in terms of penalties and anonymous loan disbursements, reduction in loan penalties, documentation and disbursement cycle, and geographic increase. footprint in the country, Das added.
He also pointed out that despite the second and third waves of the pandemic, IREDA recorded a record annual after-tax profit of Rs 634 crore and pre-tax profit of Rs 834 crore in 2021-22, registering massive growth. of 82.88 percent. and 46.41%, respectively over the period 2020-2021.
He said the company is committed to tackling the adverse effects of climate change and reducing pollution levels by funding support for renewable energy projects.