AFD inks pact with SIDBI to promote energy saving investments

French aid agency AFD will provide a 50 million-Euro loan to Small Industries Development Board of India (SIDBI) to promote energy saving investments in small industrial units and improve their energy efficiency.

An agreement to this effect was signed here today between AFD and SIDBI. The two sides also signed a 0.5 million-Euro technical assistance grant deal.

"The financing aims to promote energy saving investments within medium, small and medium enterprises (MSME) to reduce their energy bills, improve their efficiency and enhance their competitiveness," French embassy officials said here.

They added that AFD wants to support the India in implementing its National Action Plan on Climate Change (NAPCC), which defines energy efficiency and renewable energy as key priorities of the country.
    
The agreements were signed by SIDBI Chief R M Malla and Martha Stein-Sochas from AFD in the presence of French Ambassador to India Jerome Bonnafont.
    
AFD had to sign another agreement worth 70 million Euros with the Indian Renewable Energy Development Agency (IREDA), but embassy officials said its signing was postponed and it would be done in near future.
    
After the signing of agreements, the French Ambassador said cooperation with agencies, such as, SIDBI, will help it in learning the way India works for poverty alleviation here.