SIDBI takes measures to facilitate greening of MSMEs

Small Industries Development Bank of India (SIDBI) has set up a dedicated vertical with an objective to increase the resilience of MSME sector to combat the climate change and with a view to facilitate greening of MSMEs in line with the country’s commitments at Conference of Parties (COP26) at Glasgow. Union Budget 2022 also provides a policy push for climate action, clean energy, Solar, e-mobility, battery, waste management, energy efficiency through Energy Service Companies (ESCOs).

SIDBI brought regulators and key stakeholders (domestic and international) in a recently concluded international virtual conference on ‘Greening Indian Financial System’. It partnered with Agence Francaise de Developpment (AFD) and Shakti Sustainable Energy Foundation and these knowledge series shall continue for assimilating good practices.

Developmental efforts:
A window for financing high impact innovative technology and climate change projects which have reached the product prototype stage and appear to have high potential for impact has since been set up. The assistance in the form of term loan shall be supported at Rs 25 lakh per project. The cost involved in activities, fees, etc. required for obtaining approval, certifications, etc. before commencement of commercial operations of such projects may also be covered.