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Financing End to End Energy Efficiency

By 11/05/2017Publications

SUPPORT FOR MSMEs FOR Limited Period –  Financing End to End Energy Efficiency  (4E Financing Scheme)


Dear Sir/Madam

IIF has been advocating need for promoting Energy Efficiency specially in energy intensive Foundry sector .Several discussions were held earlier with the office of DC MSME .Some funds are  now available from  world Bank  (WB)-Global Environment Facility (GEF) funded project viz. “Financing Energy Efficiency at MSMEs” & is being implemented with a view to create a demonstration effect of financing of energy efficiency measures

The scheme is being implemented through ISTSL ( India SME Tech Services Ltd ) constituted for implementation of the scheme by SIDBI

Salient Features of the Scheme :-

1.Walk through Audit ; 2. Detailed Energy Audit ; 3. Support for implementation . ; 4.Finance at attractive terms

A.Substantial financial support varying from Rs 1.2 – Rs 1.7 Lakhs for detailed energy audit .The estimated cost of detailed energy audit may vary from Rs 1.5-Rs 2 Lakhs plus taxes depending upon size & no of utilities in a MSME unit  .The unit will only have to pay only Rs 30,000/- + service tax .Balance will be funded through project funds

Includes Recommendations & support for implementation of recommendations & post implementation audit

  1. A revolving fund has been created to provide loans for such energy efficiency projects to MSMEs at concessional interest rates and soft terms at interest rates whcih will be  lower than normal rates by 2-3.85% depending upon rating of the units

C.Limited funds are available Term loans of upto – 90% of the project cost with minimum loan amount of INR 10 lakh and maximum loan amount not to exceed INR 150 lakh payable over

4.5 years with moratorium of 6 months for following

v Financing of second hand machinery/equipment; purchase of land and construction of building (except minor civil works) shall not be taken up under the scheme.

v MSME should submit a DPR to SIDBI after getting Detailed Energy Audit (DEA) done through a technical agency / consultant having BEE certified Energy Auditor.

v The Borrower shall submit application to SIDBI BOs along with a copy of the DPR vetted by EEC. Eligibility of Borrower

v Operational for at least three years and should have earned cash profit in the last two years of operation and should not be in default to any bank/FI.

v Individual,  Proprietorship Concern,  Partnership Firm,  Limited Liability Partnership  (LLP),  Company,  Society,  Trust,  Association  of  persons and  any other legal entity as may be considered by SIDBI from time to time. v Eligible amount of capital subsidy under CLCSS, TEQUP, etc.  shall  also  be  sanctioned  along with  the  loan  as  per prevalent guidelines.

India SME Technology Services Limited (ISTSL) is has been promoted by  Small Industries Development Bank of India (SIDBI), Indian Bank (IB), Oriental Bank of Commerce (OBC), Indian Overseas Bank (IOB) and State Bank of India (SBI). for  facilitating for detailed energy audit and DPR preparation under this scheme through their  empanelled consultants

Please find attached application form & Energy audit questionnaire which may be returned  duly filled in asap


MSME foundries & other MSME equipment & Material Manufacturing units  are encouraged to take advantage of this scheme which is for limited period & Interested MSME  units  can contact us   for any further details /support  to avail the scheme

Please contact us for any further details /clarifications .The scheme is available only for a limited time on first come first served basis