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
- 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
