GEF Project


  • The objective of the India-MSME Energy Efficiency Project is to improve efficiency and reduce GHG emissions through commercial investments in energy efficiency goods and services in target Small and Medium Enterprise clusters.

  • Global Environment Facility (GEF) and the World Bank through SIDBI and BEE are implementing a new initiative on financing Energy Efficiency (EE) in MSME Clusters in India to improve EE and reduce Green House Gas (GHG) emissions from MSMEs utilizing increased commercial financing for EE. The Grant agreement was signed on September 13, 2010 and effectuation of this grant took place on October 28, 2010. Total GEF Funding under the project available to SIDBI is 9.05 Million USD to be utilized over a period of four years. In addition to the grant to SIDBI , GEF has also provided a grant of USD 2.25 Million to the Bureau of Energy Efficiency (BEE) for implementation of energy efficiency at MSMEs in India.. A Project Management Unit in SIDBI has been setup at New Delhi to channelize the grant to the targeted beneficiaries.

  • Under the project, SIDBI will focus largely on five energy intensive clusters viz. foundry cluster at Kolhapur, Forging at Pune, Limekilns at Tirunelveli, Chemical at Ankleshwar and mixed at Faridabad) in India through provision of assistance for completion of Energy Audits, preparation of DPRs and support in mobilization of financing from the Indian local banks to ensure that the identified EE measures are implemented. SIDBI will also provide broad support to BEE for energy efficiency implementation in additional 25 clusters where the initiatives are being undertaken by them. The project will focus on four main activities viz. as 1) Activities to build capacity and awareness for EE in MSMEs, 2) Activities to increase investments in EE in MSMEs, 3) Programme knowledge management, and 4) Project management.

Project Brief


Financial Management

Project Outcome

Environmental and Social Risk Management Framework Manual (ESMF) for SIDBI

Environmental Risk Management Framework (ERMF-PRSF)

How to Apply

Performance Linked Grant (PLG) Scheme