Scheme to raise energy efficiency underway

The World Bank in conjunction with the Small Industries Development Bank of India and the Bureau of Energy Efficiency (BEE) is implementing an initiative on financing energy efficiency in MSME industrial clusters to improve energy efficiency and reduce Green House Gas (GHG) emissions from MSMEs, utilising increased commercial financing.

The initiative envisions supporting five clusters – Kolhapur, Pune, Tirunelveli, Ankleswhar and Faridabad – through provision of assistance for completion of energy audits, preparation of detailed project reports (DPRs) and support in mobilisation of finance from Indian commercial banks to ensure that the identified energy efficiency measures are implemented.

The goal of the project is to support the development of detailed project reports for 500 projects in the selected clusters and help improve market acceptance (both by MSMEs and domestic banks) for this type of product.

Sidbi has signed an MoU with BEE to create a shelf of energy-efficient technologies for 25 MSME clusters; create awareness and build the capacity of local business development service providers for implementing energy-efficient technologies; and financing of eligible proposals for energy efficiency measures.

Under the MOU, Sidbi has helped BEE in training its consultants on financial appraisal and also in devising the formats for cluster-level technology DPRs.