Pradip Kumar Das, CMD, Indian Renewable Energy Development Agency Limited (IREDA), has emphasised the urgent need for a Green Taxonomy to accelerate the growth of India's renewable energy sector. Speaking at the CII Financing 3.0 Summit in Mumbai, Das noted that while IREDA is focused on improving its Net Interest Margin (NIM), the agency is also dedicated to fostering a strong ecosystem for renewable energy development across the country.
Das highlighted that the global financial community increasingly views the green sector as a significant business opportunity, but the absence of a Green Taxonomy is a barrier to broader green investment. He revealed that IREDA had submitted a draft Green Taxonomy to the Ministry of New & Renewable Energy (MNRE) over a year ago. Once implemented, this taxonomy would help channel capital into climate adaptation and mitigation projects, advancing India’s net zero goals.
To further support green investment, Das proposed that IREDA be included under Section 54EC of the Income Tax Act. This inclusion would allow capital gains tax exemptions on bonds issued by IREDA, enabling access to lower-cost funds and benefiting the entire green energy sector.
In a strategic move, Das suggested that up to 5% of Assets Under Management (AUM) from domestic pension and insurance funds be allocated to Green Bonds. He argued that this would strengthen the bond markets and attract both global and local investments into the green sector.
Das also reaffirmed IREDA's commitment to inclusive growth, noting that women make up 27% of its workforce, likely the highest female participation rate among Central Public Sector Enterprises (CPSEs). Additionally, he mentioned that IREDA is exploring financing options for retail and small and medium enterprises (SMEs) in the renewable energy sector, which currently lack adequate financial support.
(ET)
