IREDA Plans Subsidiary for Retail Projects in Renewable Energy Sector

New Delhi: Indian Renewable Energy Development Agency Ltd. (IREDA) is set to establish a subsidiary dedicated to retail projects, including Rooftop Solar, PM-KUSUM, Electric Vehicles, and other Business-to-Consumer (B2C) segments. The announcement was made by Shri Pradip Kumar Das, the Chairman and Managing Director (CMD) of IREDA, during a panel discussion on “Green Financing: Architecture for Accessible Finance.”

Speaking at the “2nd CII India Europe Business & Sustainability Conclave” in New Delhi, Shri Das shared IREDA’s proactive approach in addressing the retail segments of the Renewable Energy sector. He mentioned that IREDA is considering the establishment of a wholly owned subsidiary to cater to the specific needs of retail projects, pending approval from the Government of India.

The panel discussion, focusing on supporting investments in India’s Renewable Energy sector, highlighted the importance of ensuring project bankability. Shri Das emphasized IREDA’s commitment to making various Renewable Energy technologies, including emerging ones like Electric Vehicles, Green Hydrogen, and Offshore Wind, financially viable. He also shared IREDA’s success in reducing Non-Performing Assets (NPAs) over the past three years by addressing borrower concerns and improving transparency.

During his address on “PM Surya Ghar Muft Bijli Yojana,” announced by the Prime Minister on February 13, 2024, Shri Das underscored IREDA’s efforts to enhance the bankability of Rooftop Solar projects.

Highlighting the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in environmental sustainability, Shri Das reaffirmed IREDA’s commitment to addressing challenges faced by MSMEs. He emphasized the need for MSMEs to enhance their ratings and governance to facilitate their access to finance for renewable energy projects at competitive interest rates. The move aligns with IREDA’s broader objective of promoting the involvement of MSMEs in the Renewable Energy sector and fostering a sustainable energy future.