Go Green with SIDBI – End to End Energy Efficiency – 4E Financing Scheme of SIDBI
Profits are within the Boundary wall of our Factory, Yes with increasing costs on Raw material, Labour and Energy, the shrinking profits of MSMEs can only be tapped by adopting initiatives towards Sustainability Solutions. One such measure is adopting Energy Efficiency & Energy Conservation in our Production Process. The major challenge for any MSME towards achieving this would be the Technical Study (Detailed Energy Audit) on the Process by which the MSME can identify where they are losing money in the form of energy and The Investment Plan for the same.
Small Industries Development Bank of India (SIDBI) has recently launched a scheme called “End to End Energy Efficiency – or “4E Scheme”. 4E Scheme aims to promote Energy Efficiency Investments in MSME’s. Under this scheme SME’s can avail Loan for their Investments towards Implementing Energy Efficiency Measures, New Technology Up gradation in Machinery which conserves energy, Investment towards Roof Top Solar Etc. The MSMEs will be assisted with Technical Consultancy and Financial Facilitation at better rate of Interest (below 10%).
Eligibility: The Eligible borrowers for this Scheme are Micro, Small or Medium Enterprises in the Manufacturing or Service Sector. In order to avail Loan under this Scheme, the Plant has to submit Detailed Energy Audit (DEA) & Detailed Project Report (DPR). The Audits and DPR will be done through India SME Services Technology Limited (ISTSL) a Joint Venture of SIDBI.
Loan Amount: Up to 90% of the Project Cost can be covered under this scheme. (Promoter’s Contribution is Minimum 10%) The Minimum Loan amount is INR 10 Lakhs & Maximum INR 150 Lakhs. Subject to the condition, the eligible Loan amount should not exceed one-fifth of the total turn-over of the application unit.
Interest Rate: Interest rate will be in the range of 8.10 – 9.9%. The Repayment period is 36 Months for Loan up to INR 100 Lakhs and 60 Months for Loan Up to INR 150 Lakhs including initial moratorium period up to 6 months.
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To Know More: To learn more about the Scheme Guidelines you can contact SIDBI-Energy Efficiency Cell – ISTSL, Delhi Ph; 09717753520 or your Nearest SIDBI Branch Office Mr. Sheshadri (AGM-Tirupur) 0421-2485696 or ISTSL’s Empanelled Resource Shri. R Azhahia Manavalan at +91-9965555774.