Shri Pradip Kumar Das, Chairman & Managing Director, Indian Renewable Energy Development Agency Limited (IREDA), assured commitment to reducing the cost of borrowing and improving the viability of the Renewable Energy sector in India. 

While speaking at the CII Financing 3.0 Summit in Mumbai, Shri Das highlighted the fact that a Green Taxonomy was the need of the hour for accelerated development of the green energy ecosystem in India.

In his keynote address, “Green Financing, Climate Risks, and Sustainable Taxonomy: The Way Forward,” Shri Das has amply brought out the fact that the endeavor of IREDA is not only to improve its NIM but to bring in the holistic development of renewable energy throughout the country through an enabling ecosystem.

Highlighting one important suggestion Das proposed exempting IREDA under Section 54EC of the Income Tax Act, wherein exemption from capital gains tax could be given for bonds issued by the company. This will give access to lower-cost funds and, in turn, reduce the cost of funds to the entire green energy sector.

Further underlining the proactive role of IREDA, Shri Das said that a draft Green Taxonomy was submitted to MNRE by the agency a year and a half ago. Now that the Hon’ble Finance Minister has announced the implementation of climate taxonomy, I hope this framework will go a long way in enhancing the supply of capital for climate adaptation and mitigation projects.

He said a well-structured Green Taxonomy would accelerate India’s journey towards the goals of Net Zero and would also attract considerable green funding from the world.

On a key strategic recommendation to ramp up green investment, Shri Das suggested allocating up to 5% of AUM from domestic pension and insurance funds into Green Bonds. He recommended that this would enhance the bond markets and bring in more global and local investments into the green sector.

Shri Das underlined the commitment of IREDA to inclusive growth by highlighting the fact that 27% of the total employees of the company were women, perhaps one of the highest in CPSEs(Central Public Sector Enterprises). He also highlighted that IREDA is pursuing the feasibility of providing financing to retail and SMEs in the RE sector—two areas where finances are highly insufficient.

Shri Das’s address at the summit underlined IREDA’s multi-faceted approach toward driving the growth of renewable energy in India, balancing financial strategies with a greater commitment toward sustainability and inclusivity.

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