Indian SMEs to get Energy Efficiency Funding Boost

THE INDIAN Small Industries Development Bank of India (SIDBI) has entered into an agreement with the Bureau for Energy Efficiency (BEE) for the development of energy efficiency amongst MSMEs.

Micro, Small and Medium Enterprises (MSME) have a huge potential for energy saving through energy efficiency improvements, and this new agreement will help to create awareness in this sector, but the main aim of the project is to improve energy efficiency and reduce green house gas emissions via commercial investments in energy efficiency upgrades.

Sushil Muhnot, Sidbi Chairman and Managing Director, said: "The agreement will facilitate energy efficiency improvement through capacity-building among MSMEs and extend financial support for preparing investment-grade proposals for energy efficiency improvements."

The Financing Energy Efficiency at MSMEs project, brings SIDBI and BEE together as the co-implementing agencies, who are teaming up with the World Bank to fund the project, which is also supported by the Global Environment Facility.

The proposed project will facilitate energy efficiency improvement through capacity building in MSME clusters and provision of grant support for preparing investment grade proposals for energy efficiency improvements.

The energy efficiency market in India has been estimated to be worth over $3.1 billion with the majority of the opportunities within the 3 million SMEs, who contribute about 60 percent of the country's GDP.

Muhnot commented that the project involves developing an integrated approach, providing financial support to qualified proposals for adopting energy efficient technologies and measures.

He added: "In addition to reduction in direct energy intake, implementation of potential programmes can produce additional positive environmental impacts from reduced combustion of fossil fuels."

Picture Sunrise on the holy Ganges - Varanasi by babasteve

Monday 18th July 2011

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