Medium, Small and Micro Enterprises to get green tech from SIDBI and BEE

Posted on July 15, 2011 by

To promote energy efficiency in the MSME, which is the most difficult customer for such interventions, SIDBI, Small Industries Development Bank of India has entered into an agreement with the Bureau for Energy Efficiency (BEE). The team will work on creating awareness and capacity-building of local businesses such as service providers to implement the energy efficiency technologies

This work is part of actions of SIDBI and BEE as co-implementing agencies for a World Bank-funded project titled ‘Financing energy efficiency at micro, small and medium enterprises (MSMEs)’, supported by the Global Environment Facility. Work on this project has already started along with the science and technology ministry, with an aim to create a policy document on “Technology Vision for MSMEs- 2020”.

The MSMEs typically do not employ cutting edge technology due to lack of access to capital and technology resources.  The project will help improve efficiency and reduce green house gas emissions by creating targeted investments in energy efficiency goods and services. India has a large number of SMEs, about 3 million. These are also significant contributors to nation’s economy, adding some 60% within themselves. The energy efficiency market is estimated to be more than $ 3 billion. BEE would create an integrated approach backed up with financial support to ensure implementation of worthwhile proposals.

SIDBI has also been active in promoting clean technologies under financial support from agencies such as the KfW of Germany and the Japan International Cooperation Agency. The programs provide soft loans to encourage investment in RE/energy efficient technologies while creating awareness with a targeted approach taking into condiseration cluster-specific information. SIDBI has worked with over 2,000 units with lending to a tune of Rs 800 crore for investments in the same field – RE and energy efficiency.

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