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Workshop on Financing of Energy Efficient Technology for MSMEs – Opportunities and Challenges

The workshop on Financing Energy Efficient Technology for MSME – Opportunities and Challenges was held at Hotel Park, New Delhi on 3rd March 2014. It was jointly organized by the Ministry of Micro Small and Medium Enterprises and the German Development Cooperation GIZ. The key note address was delivered by Mr. Madhav Lal, Secretary, Ministry of MSME. Please find attached for your reference the agenda, list of participants, photographs and all presentations.

Energy efficiency and therefore energy efficiency finance has been put high on the political agenda. Although there have been a number of activities in this domain, MSMEs still face challenges in understanding the importance of the topic and are taking limited action in response to proposals by the numerous energy audits, awareness campaigns and capacity buildings conducted. A first round of stakeholder consultations suggests that the presentation of best-practices by MSME will convince other entrepreneurs who have already been exposed to energy efficiency awareness campaigns. It has been observed that they often lack trust and hence should be the first one to start such a project

Against this background, the Ministry of MSME and GIZ have organized this workshop. The goal was to address MSMEs by showcasing best practices already undertaken in the MSME sector. The workshop also aimed to provide

  • a networking platform for the relevant stakeholders such as MSMEs, bankers, Chartered Accountants, Energy Auditors and Consultants and
  • information on relevant subsidies, loan schemes and trainings

The Ministry of MSME presented details of the Technology and Quality Upgradation Support to MSMEs (TEQUP). The main objective of the scheme is to sensitize the Indian MSMEs to upgrade their manufacturing processes toward usage of energy efficient technologies so as to reduce cost of production and emission of Green House Gases. TEQUP supports by way of

  • Capacity Building of MSME Clusters in EET (capacity building - grant of 75% of the actual expenditure, subject to maximum Rs. 75,000/- per programme; DPR - grant will be 50% of the actual expenditure subject to maximum Rs.1.5 lakh per DPR )
  • Assistance in Implementation of Energy Efficiency Technology Projects (subsidy upto 25% of the cost of the project will be provided, maximum amount Rs.10 lakhs per project)
  • Assistance in Product Certification (subsidy to the extent of 75% of the actual expenditure, towards licensing of product to National/International Standards, maximum Rs.1.5 lakh per MSME)

In the course of the event it was further demonstrated that Energy Efficiency Projects are an effective business model for MSMEs as well as for Banks. Taking into account that latter are directly impacted in terms of profitability, energy efficiency projects help them to mitigate their portfolio risk and seize new business opportunities. Further, bankers and Chartered Accounts can play an important role to pave the way for a more energy efficient MSME sector.

It was highlighted by the Ministry of MSME and various other participants that

  • There is need for collaboration and coordination of interventions in the field of energy efficiency for MSMEs.
  • Platforms such as Sameeeksha should be used more effectively to share information about best practices and outcome of interventions.
  • The collection of project related data across all stakeholders working on energy efficiency interventions should continue.
  • The preparation of benchmarking documents for several interventions such as awareness raising for MSMEs, energy audit preparation and capacity building of bankers by the Ministry of MSME is seen as a very useful undertaking by many participants.

Presentations


For more Information, Contact:
Anja Shivhare
Private Sector Development
Responsible Enterprise Financing Programme
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
M: +91 9871080208
E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 
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