Indian SMEs to promote green tech

Bank of India (SIDBI) has signed an agreement with the Bureau for Energy Efficiency (BEE) to create energy efficient technologies for the micro, small and medium-sized enterprises (MSMEs) sector, reports MSN.

“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,” SIDBI chairman and MD Sushil Muhnot says.

SIDBI and BEE are working as co-implementing agencies for preparing a World Bank-funded project titled 'Financing energy efficiency at MSMEs'.

According to Money Control, the main objective of the project is to improve efficiency and reduce green house gas emissions through commercial investments in energy efficiency goods and services among the target MSME clusters, the release added.

The potential energy efficiency market is estimated at over $3.1 billion and most of this potential lies with the three million SMEs which contribute to about 60% of the country's GDP.

The agreement with BEE involves developing an integrated approach with financial support to eligible proposals for adopting energy efficient technologies and measures, Muhnot said.

The project has already supported India SME Technology Services, a firm promoted by SIDBI and leading public sector banks, to prepare a carbon credit guidebook for MSMEs, update its existing basket of 800 technologies and flag them as carbon-free, clean, energy efficient technologies, writes IBN Live.