Tuesday, September 09, 2014: Japan International Cooperation Agency (JICA) and Small Industries Development Bank of India (SIDBI) have entered a loan agreement of Thirty Billion Japanese Yen (JPY 30,000,000,000) for the Energy Saving Project (Phase 3) for Micro, Small and Medium Enterprises (MSMEs). The agreement was signed by Shinya Ejima, Chief Representative, JICA and N K Maini, Deputy Managing Director (In-charge), SIDBI in New Delhi in the presence of other senior officials.
The main aim of the project is to support energy saving for MSMEs in India. Direct financial assistance would be provided to the MSMEs by SIDBI, Non-Banking Financial Companies (NBFCs), Primary Lending Institutions (PLIs) and also through, indirect schemes. To promote energy efficiency in MSME sector, thereby ensuring environment improvement and sustainable economic development in MSME eco-system, the systems have also been provided by the benefits of Technical Assistance.
The line of credit preferential term is for a period of fifteen years with five year moratorium. The deal is backed by government guarantee. SIDBI and JICA share more than two decades of valuable relationship. The project is Phase 3 of the MSME Energy Saving Projects to support the prevailing initiatives of SIDBI towards the energy saving investment in the MSMEs in India.
