The SIDBI (Small Industries Bank of India) bank which lends money to various small entrepreneurs signed a USD 543 million (3, 4000 crores) with the World Bank. The pact includes two projects; one for providing debt assistance to start-ups and MSMEs and the other to promote energy efficiency investments in India. An SIDBI official informed the media that the two projects will mark the start of new beginnings in the area of MSME financing and also to help the government’s efforts to promote the ‘Make in India’ campaign and the ‘Zero Defect Zero Effect Programme’.
The first project which is on MSME, which includes innovation and MSME growth, will get a credit of USD 500 million to SIDBI. Out of the total 500 million, 150 million will be used as development of early stage risk capital finance, 200 million will be used for supporting service sector enterprise and the remaining 150 million will be used for financing of manufacturing MSMEs.
The project will also include women entrepreneurs (20 per cent), and underserved states such as Uttar Pradesh, Madhya Pradesh and West Bengal (25 per cent).
The second project will be for Partial Risk Sharing Facility for Energy Efficiency (PRSF), which will have a total outlay of USD 43 million. Out of the total USD43 million, 37 million will be managed by SIDBI. This project also includes a technical assistance of 4 million dollars which will be implemented by SIDBI and the two million will be implemented by Energy Efficiency Services Limited.
The main objective of the programme is to assist the government of India’s efforts to transform the EE (Energy Efficiency) market in India by promoting EE investments. This will be done through ESPC (Energy Service Performance Contracting), which will be delivered through Energy Service Companies.
The project is expected to provide credit guarantee to around 500 ESCO implemented projects.
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