GEF-WORLD BANK PROJECT 'FINANCING OF ENERGY EFFICIENCY AT MSMES'
People and key organizations
GEF, World Bank, BEE, SIDBI
The project 'Financing of Energy Efficiency at MSMEs' is part of the Global Environmental Facility (GEF) Programmatic Framework for Energy Efficiency in India with an objective to increase demand for energy efficiency investments in target MSME clusters and to build their capacity to access commercial finance.
The project aspires to address the current gap in understanding between energy auditors and bank loan officers and demonstrate a viable mechanism of synergic tie up between SMEs, energy auditors, financial consultants/ chartered accountants, local industrial or MSME associations and local bankers.
The GEF implementation agency for this project is the World Bank, and the two executing agencies are Bureau of Energy Efficiency (BEE), Ministry of Power, Govt. of India and the Small Industries Development Bank of India (SIDBI). The project implementation period was originally scheduled for the period 2010-14 and the same has been extended for two years i.e. till December 2016.
Under the project, SIDBI will focus largely on five energy intensive clusters:
- Kolhapur foundry cluster
- Pune forging cluster
- Tirunelveli lime kilns cluster
- Ankleshwar chemicals cluster
- Faridabad 'mixed' cluster
Assistance is provided for completion of energy audits, preparation of DPRs, and support in mobilization of financing from the local Indian banks to ensure that the identified EE measures are implemented.
The project consists of the following three main components.
1. Building Capacity and Awareness
- Marketing & Outreach effort to clusters, Capacity building of industry associations
- Technical Assistance to energy professionals
- Support to financial institutions
- Support to MSMEs in accessing finance
- Vendor outreach, enlistment and support
2. Increased Investment in Energy Efficiency
- Energy efficiency project development support such as energy audits/ DPR preparation
- Performance linked grants for demonstration of efficient technologies
- Revolving fund
3. Knowledge Management and Sharing
- Knowledge portal
- Demonstration projects
- Success stories and case studies
- Policy inputs on knowledge management
Under the project, a knowledge portal has been launched [http://www.indiasavesenergy.in/].
The portal contains information on energy efficient technologies, best industrial practices and success stories that may find interest among different stakeholders. There are dedicated sections providing contacts of technology suppliers, energy efficiency financing schemes, and energy professionals trained under the project that may be contacted to obtain relevant solutions.