The Small Industries Development Bank of India (SIDBI) recently signed Memorandum of Understanding (MoU) with the Bureau for Energy Efficiency (BEE) for creation of a shelf of energy efficient technologies for MSME clusters in order to create awareness among Micro, Small and Medium Enterprises (MSMEs) for implementing energy efficient technologies.
Currently, SIDBI and BEE are working together as the co-implementing agencies for a World Bank project titled Financing Energy Efficiency at MSMEs. The project will be supported by a grant from the Global Environment Facility (GEF).
The main objective of the project is to improve efficiency and reduce Green House Gas (GHG) emissions through commercial investments in energy efficiency goods and services in target MSME clusters.
India's potential energy efficiency market is estimated at more than USD 3.1 billion and most of this potential in India lies with SMEs. SIDBI has emerged as the key nodal agency for the Government of India in this endeavour.
The 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, he added.