The Indian Renewable Energy Development Agency stated it is dedicated to growing the engagement of MSMEs in the green energy industry by granting more loans at MSME Banking Conclave 2022.
MSMEs only constitute 1.86 percent of the company’s total loan assets of Rs 33,884 crore, the IREDA is seeking to solve the difficulties of MSMEs in order to boost their involvement in the renewable energy industry.
Target of 500 GW of RE capacity by 2030 cannot be reached without the major participation of MSMEs, and consequently, their efforts will be a vital driver of Aatmnirbhar Bharat.
A major barrier for MSME entrepreneurs is the inability to get loans with reasonable interest rates, but the IREDA has significantly improved the ease of doing business in terms of faceless loan sanctions and disbursements, reduction in loan sanction, documentation and disbursement cycle, and increased geographical footprint in the country.
Despite the second and third waves of the pandemic, the IREDA recorded an all-time high annual profit after tax of Rs 634 crore and profit before tax of Rs 834 crore in 2021-22, recording a tremendous gain of 82.88 percent and 46.41 percent, respectively over 2020-21.