SIDBI signs MoUs with stakeholders that will contribute to India’s Sustainable Development Goals (SDG) 2030 Targets

Hyderabad, September 19, 2022: SIDBI, towards its continuing effort for MSMEs to embrace energy efficiency in operations and reduce their Carbon Footprint status, entered MoUs with stakeholders that will contribute to India’s SDG 2030 Targets.

Sectoral Engagements with GiZ
Waste Solutions for a Circular Economy in India

An agreement was signed to announce the collaboration of Small Industries Development Bank of India (SIDBI) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH for operating a Risk Sharing Facility (RSF) housed within the NAMA Facility entitled ‘Waste Solutions for a Circular Economy in India’ project. The project has the Ministry of Environment, Forest and Climate Change (MoEFCC) as the nodal Ministry and the Ministry of Housing and Urban Affairs (MoHUA) as the implementation partner Ministry.

SIDBI will operate the RSF that provides credit guarantees to loans from commercial banks or NBFCs (Non-Banking Financial Companies) in order to accelerate activities of waste management companies, low-carbon waste management solutions, biomethanation, recycling, composting, and Refused Derived Fuel for use in cement kilns.

The RSF’s initial budget would be EUR 4.2 million which will be from the NAMA Facility. The project will also support building of awareness and capacities among various stakeholders, thereby enhancing the success of the RSF. Around 15 waste management companies have already shown interest in accessing debt guarantee facility from the RSF during the pre-launch event held in August.

The NAMA Facility is a multi-donor programme that supports the implementation of NAMA Support Projects (NSPs) that affect sector-wide shifts toward sustainable, irreversible, and carbon-neutral pathways. It is funded by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the UK Department for Business, Energy and Industrial Strategy (BEIS), the Danish Ministry of Climate, Energy and Utilities (KEFM) and Ministry of Foreign Affairs (MFA), the European Commission (EU), and the Children’s Investment Fund Foundation (CIFF).

TIFAC – SRIJAN

SIDBI signed an MOU with Technology Information, Forecasting and Assessment Council (TIFAC) to collaborate for the identification of scalable green and clean technologies under MSMEs. Under the collaboration, TIFAC will provide support through assessment of technologies and projects, where SIDBI will support MSMEs through financing under its various credit schemes to implement the identified technologies. This will help commercialization of innovative technologies through industries particularly MSMEs and startups, where SIDBI would capitalize technical strength and capabilities of TIFAC as a knowledge partner in technoeconomic assessment and provide financing under its various schemes. SIDBI and Tifac shall explore deepening outreach of program including extending equity infusion into innovative/ problem solving technologies and exploring to create a fund which will support the Green Innovative Technologies. A video showing the success stories under SIDBI – TIFAC Srijan Programme was also released by Shri Sivasubramanian Ramann, CMD, SIDBI on the occasion.

TIFAC and SIDBI recognize that cooperation among the two parties will further accelerate the development of MSMEs across India in a structured and planned manner through synergies. It may be mentioned that under jointly channelised SRIJAN, till now, 38 innovative technology projects have been supported and all have successfully been commercialised.

Capacity Building collaboration with CII
An MoU has been signed between SIDBI and The Confederation of Indian Industry (CII). The partnership will enable SIDBI to Promote clean & green initiatives among MSMEs, facilitate their implementation, SIDBI’s financing schemes for renewable energy, energy efficiency, clean & green projects, and capacity building & skill development. SIDBI will also recognise the rooftop solar vendor rating program and consider rating provided under the program as one of the tools in financing rooftop solar projects. CII will facilitate through organizing webinars/ workshops on various clean and green initiatives related to renewable energy (especially rooftop solar), energy efficiency/ management, net zero, green buildings, resource efficiency, circular economy, etc. In these webinars, some of the initiatives of CII-Godrej GBC such as Indian Green Building Council (IGBC’s) Net Zero Energy Buildings Rating System, Green Company (GreenCo) Rating System, and Rooftop Solar Vendor Rating Program (VRP) may also be covered for the benefit of MSMEs.

The objective of this MoU is to provide collaborative support for the benefit of MSMEs which also includes continually improving renewable energy (RE) adoption, environmental performance, resource efficiency and reduce costs & improve competitiveness of MSMEs.