SIDBI announces several MoUs to help MSMEs embrace energy efficiency
Sustainability for MSMEs: SIDBI on Saturday announced partnerships with multiple stakeholders in the sustainability ecosystem to help MSMEs adopt energy efficiency in their operations and also contribute to India’s 2030 Sustainable Development Goals (SDGs). The first Memorandum of Understanding (MoU) was signed with the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH for the operation of a Risk Sharing Facility (RSF) which provides credit guarantees to loans from commercial banks or non-bank financial companies (NBFC). ). The loan offering aims to strengthen the activities of “waste management companies, low-carbon waste management solutions, biomethanation, recycling, composting and refused by-product fuel for use in furnaces”. cement,” SIDBI said in a statement.
The initial budget for the RSF would be €4.2 million (about Rs 33.50 crore) which would come from the NAMA facility, SIDBI said. NAMA Facility is a multi-donor program funded by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the UK Department for Business, Energy and Industrial Strategy (BEIS), Danish Ministry of Climate, Energy and Utilities (KEFM) and Ministry of Foreign Affairs (MFA), European Commission (EU) and Children’s Investment Fund Foundation (CIFF). The facility supports the implementation of “NAMA Support Projects (NSP)” for sustainable, irreversible and carbon neutral activities. About fifteen waste management companies have already expressed their interest in accessing the FSR’s debt guarantee facility.
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The second MoU was signed with the Technology Information, Forecasting and Assessment Council (TIFAC) to identify scalable green and clean technologies by MSMEs. TIFAC will assess technologies and projects while SIDBI will support MSMEs through financing under its various credit programs to implement identified technologies. TIFAC is a technology think tank under the Department of Science and Technology mandated to work for future technological development in India in socio-economic sectors.
The third MoU signed with the industry body Confederation of Indian Industry (CII) also aimed to promote clean and green initiatives among MSMEs and facilitate their implementation through SIDBI’s funding schemes. CII will host webinars and workshops on different clean and green initiatives related to renewable energy (especially rooftop solar), energy efficiency/management, net zero, green buildings, energy efficiency resources, circular economy, etc.
SIDBI is already running initiatives such as the Srijan scheme to provide concessional loans of up to Rs 2 crore per project for MSMEs at an interest rate of 3-5% per annum for innovative technology projects that have reached the stage of pre-release or have tested the market and are ready for scale.
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