MSME (Syllabus: GS Paper 3 – Economy)

Context: Recently, Indian Renewable Energy Development Agency Limited (IREDA) underscored the crucial role of lending to MSMEs in the Renewable Energy sector, emphasizing economic and environmental benefits.

Micro, Small & Medium Enterprises (MSMEs)

• About: MSMEs fall under the regulatory purview of the Micro, Small & Medium Enterprises Development (MSMED) Act of 2006.
• Classification of MSMEs:

oMicro: Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore.

oSmall: Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore.

oMedium: Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

Renewable Energy in India 

• India stands 4th globally in Renewable Energy Installed Capacity (including Large Hydro), 4th in Wind Power capacity & 4th in Solar Power capacity (as per REN21 Renewables 2022 Global Status Report).
• The country has set an enhanced target at the COP26 of 500 GW of non-fossil fuel-based energy by 2030.