Financing Schemes For Sustainable Development

Who is it for?

Micro, Small and Medium Enterprises (MSMEs) planning to invest in:

  • Energy saving investments in plant and machinery / production processes in order to reduce carbon footprint and enhance Profitability.
  • Cleaner Production and emission reduction measures, waste management and Common Effluent Treatment Plant (CETP) facilities.

Energy Service Companies (ESCOs) providing solutions for EE / CP / renewable energy

Original Equipment Manufacturers (OEMs)which manufacture energy efficient / cleaner production / green machinery / equipment for MSMEs

Objective:

Financial products to enable climate and environmental friendly investments to:

  • Promote energy saving in Micro, Small and Medium Enterprises(MSMEs) in India, by providing financial assistance to MSMEs, directly by SIDBI as well as through refinance to Primary Lending Institutions (PLIs) and Non Banking Financial Companies (NBFCs),
  • Reduce the emission of greenhouse gases, especially Carbon Dioxide (CO2) to contribute towards climate change mitigation and achieve a reduction or avoidance of emissions and pollution through the introduction of financial products
  • Support MSMEs towards development, up-scaling, demonstration and commercialization of innovative technology based project.

Needs Addressed

  • Acquisition, installation, remodeling and upgrading of existing  energy saving equipment thus improving energy efficiency.
  • Installation of building envelopes, equipments, heating systems, lighting, and such other equipments electrical power/motors in compliance with energy performance standard provided in the Energy Conservation Building Code (ECBC)/LEED/ GRIHA/ IGBC..
  • Alternative/Renewable Energy sources such as Wind Energy (Windmills), Solar Energy (Photovoltaic & Thermal), Micro Hydro, Biomass/Bagasse (Gasifier/Cogeneration), Municipal Solid Waste based power generation, etc. (on-grid / off-grid; captive/ non-captive, etc.) and equipments which can reduce Green House Emission.
  • Investments in Effluent and Waste Treatment / Recycling and such other activity which promote cleaner technology
  • Investment in activities related to Energy Efficiency or Clean technologies such as energy audit / environment compliance audit / pollution control & management consultancy services, ratings, certification, etc. and Energy Service Companies (ESCOs).

Key Benefits

  • Attractive Rates of Interest on Energy Saving Projects
  • Reduced Energy Costs & Enhanced Profits
  • Recovery of valuable by-products;
  • Improved quality of the finished product
  • Waste reduction / minimization / Pollution control
  • Participating in Sustainable Growth
  • Eligible for Government of India subsidy like TEQUP, CLCSS, TUFS, etc.

Financing Schemes

1) JICA Phase 3: : Scheme for Energy Saving Projects in MSME Sector

Eligibility Criteria for the Units/Industries:

  • New / existing MSME units, as per the definition of the MSMED Act, shall be eligible for assistance under the scheme.
  • Existing units should have satisfactory track record of past performance and sound financial position and should not be in default to institutions/banks.
  • The projects which will be eligible for finance under the JICA line will be energy saving projects and health sector projects which are to be screened as per the Energy Saving Equipment List / activity List / Medical Equipment List.
  • Units should have minimum credit rating of investment grade or its equivalent as per internal credit rating model.
  • Sectors such as the arms industry, narcotics industry or any unlawful businesses are categorized as non eligible business and shall not be eligible for finance under this Scheme. Similarly, such projects which may result in larger negative social and environmental impact would also not be eligible under the Line of Credit.

2) Sustainable finance Scheme (SFS)

  • Sustainable development projects which have significant impact towards energy efficiency / cleaner production but not covered under the international / bilateral lines of credit as above shall be assisted under SFS.
  • Guidelines as applicable under DCS. 
  • E-Broucher of Sustainable Finance Scheme

3) Financing End to End Energy Efficiency Investments in MSMEs (4E Financing Scheme)

 

How to Apply

FAQ