COP28: IREDA launches retail division to target PM-KUSUM, rooftop solar segments

New Delhi: Pradip Kumar Das, Chairman & Managing Director (CMD) of Indian Renewable Energy Development Agency Limited (IREDA), announced the launch of IREDA’s retail division on Friday, which became operational on December 5. This strategic initiative is geared towards enhancing emphasis on providing loans to borrowers in the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors, said an official statement. He was speaking during the Leaders’ Dialogue on “Actioning Solutions for Global Sustainable Development and Governance of Resources” on December 7 organised by CEEW and CII as part of COP-28 in Dubai.

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IREDA’s retail division sanctioned 1st loan of Rs 58 cr under PM-KUSUM

“Shortly after opening, IREDA’s retail division quickly sanctioned its first loan amounting to Rs 58 crore under KUSUM-B, underscoring IREDA’s dedication to emerging as the preferred lender in new segments, mirroring its success in other renewable energy sectors,” said the statement. The IREDA CMD has also proposed a 1-2 percent Assets Under Management (AUM) allocation for domestic pension and insurance funds into Renewable Energy (RE) bonds. This strategic move aims to deepen bond markets, fostering increased global and local investments, said the statement.

Further, Das shared his insights in two panel discussions on Friday at COP-28 in Dubai. The first discussion, organised by the Asian Development Bank, focused on “Scaling Up Climate Finance to Meet India’s Energy Transition Goals.” The second, jointly organised by the International Solar Alliance (ISA) and CII, on “Financing Industry Transitions in Emerging Markets and Developing Economies.”

‘Need to find and finance low-emission solutions to meet rising energy demand’

In the panel discussion on “Scaling Up Climate Finance to Meet India’s Energy Transition Goals,” Das emphasised the necessity of establishing a comprehensive green taxonomy covering the entire spectrum of Renewable Energy and green technology-based investments. This, he noted, would enhance transparency in Renewable Energy sector issuances, attracting investors with a commitment to sustainability.

During the session on “Financing Industry Transitions in Emerging Markets and Developing Economies,” the IREDA CMD underscored the significance of finding and financing low-emission solutions to meet the rising energy demand. Recognising the evolving green energy landscape, Das stressed on the need for unique solutions across both traditional and new and emerging sectors. Addressing potential solutions for emerging and new renewable energy technologies, Das highlighted the necessity to leverage climate funds. He advocated for low-cost funding to improve risk-adjusted returns and mobilising private capital on a larger scale. This approach, he argued, would enable low-cost funds, accommodate margins for Non-Performing Assets (NPAs), and mitigate the impact of rising interest rates.

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