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IREDA Launches Retail Division and Advocates Sustainable Investment at COP28

Following the launch, IREDA's Retail division promptly approved its first loan, totaling INR 58 crores, under KUSUM-B.

December 11, 2023. By Abha Rustagi

Indian Renewable Energy Development Agency Limited (IREDA) took a significant step towards enhancing its outreach by launching its retail division on December 5. The strategic move is aimed at reinforcing its focus on providing loans, particularly in the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.

This announcement came from the Chairman and Managing Director of IREDA, Pradip Kumar Das, during the Leaders’ Dialogue on 'Actioning Solutions for Global Sustainable Development and Governance of Resources' at COP28 in Dubai on December 7.

Following the launch, IREDA's Retail division promptly approved its first loan, totaling INR 58 crores, under KUSUM-B. This highlights IREDA's commitment to becoming a preferred lender in emerging sectors, mirroring its success in various renewable energy domains.

Pradip Kumar Das, CMD, IREDA, also proposed a noteworthy step towards sustainable investing by recommending a 1 percent-2 percent allocation of Assets Under Management (AUM) for domestic pension and insurance funds into Renewable Energy (RE) bonds.

Das actively participated in two panel discussions during COP28 in Dubai. In the first discussion, organized by the Asian Development Bank (ADB), the focus was on 'Scaling Up Climate Finance to Meet India’s Energy Transition Goals.' The second discussion, jointly organized by the International Solar Alliance (ISA) and CII, centered on 'Financing Industry Transitions in Emerging Markets and Developing Economies.'

In the discussion on 'Scaling Up Climate Finance,' CMD, IREDA, stressed the need for establishing a comprehensive green taxonomy covering the entire spectrum of renewable energy and green technology-based investments. This, he argued, would enhance transparency in the sector, attracting investors committed to sustainability.

During the session on 'Financing Industry Transitions,' Das highlighted the significance of finding and financing low-emission solutions to meet the rising energy demand. He emphasized the need for unique solutions across both traditional and new and emerging sectors, advocating for leveraging climate funds to address potential challenges.

Das proposed low-cost funding to improve risk-adjusted returns, mobilize private capital, and mitigate the impact of rising interest rates, ultimately fostering a sustainable and resilient green energy landscape.

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Chairman and Managing Director

IREDA's Retail division

Dubai