Pradip Kumar Das, Chairman & Managing Director (CMD) of the Indian Renewable Energy Development Agency Limited (IREDA), unveiled IREDA’s retail division on Friday, marking a significant step towards expanding its lending services. The retail division officially commenced operations on December 5, with a primary focus on providing loans to borrowers participating in the PM-KUSUM scheme, Rooftop Solar projects, and various Business-to-Consumer (B2C) sectors, according to an official statement.
Speaking during the Leaders’ Dialogue on “Actioning Solutions for Global Sustainable Development and Governance of Resources” on December 7, hosted by the Council on Energy, Environment, and Water (CEEW) and the Confederation of Indian Industry (CII) as part of COP-28 in Dubai, Pradip Kumar Das emphasized IREDA’s commitment to supporting renewable energy initiatives.
First loan of Rs 58 Crore sanctioned under PM-KUSUM
Shortly after its launch, IREDA’s retail division wasted no time and quickly approved its inaugural loan, amounting to Rs 58 crore, under the PM-KUSUM scheme. This achievement underscores IREDA’s dedication to becoming the preferred lender in emerging segments, mirroring its success in other renewable energy sectors, as stated in the official announcement.
In addition to this, Pradip Kumar Das proposed allocating 1-2 percent of Assets Under Management (AUM) from domestic pension and insurance funds into Renewable Energy (RE) bonds. This strategic move aims to deepen bond markets, attracting both global and local investments, further promoting renewable energy initiatives.
Pradip Kumar Das actively participated in two panel discussions on Friday during COP-28 in Dubai. The first discussion, organized by the Asian Development Bank, centered on “Scaling Up Climate Finance to Meet India’s Energy Transition Goals.” During this session, Das stressed the importance of establishing a comprehensive green taxonomy to cover the entire spectrum of Renewable Energy and green technology-based investments. Such a taxonomy would enhance transparency within the renewable energy sector, attracting investors committed to sustainability.
In the second panel discussion, jointly organized by the International Solar Alliance (ISA) and CII, focusing on “Financing Industry Transitions in Emerging Markets and Developing Economies,” Pradip Kumar Das highlighted the critical need to identify and finance low-emission solutions to meet the growing energy demand. He emphasized the importance of unique solutions in both traditional and emerging sectors, as well as leveraging climate funds. Das advocated for low-cost funding to improve risk-adjusted returns and mobilize private capital on a larger scale, mitigating the impact of rising interest rates while accommodating margins for Non-Performing Assets (NPAs).
IREDA’s launch of its retail division signifies a major step forward in India’s renewable energy financing landscape, reinforcing the country’s commitment to sustainable energy transition.