Gadkari Invites MSMEs to Avail Concessional Debt Finance For Rooftop Solar Installations

- Advertisement -

The World Bank is working with the Ministry of Micro, Small & Medium Enterprises, to bring in a credit guarantee mechanism catering to lending to MSMEs who would like to reduce their energy expenses in the long term by investing in rooftop solar

Union Minister of Micro, Small and Medium Enterprises (MSME) and the Minister for Road Transport & Highways Nitin Gadkari has invited MSMEs to avail concessional debt finance to install rooftop solar for business efficiency. Rooftop Solar, he said, offers an excellent value proposition to MSMEs by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost.

“I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops,” said Gadkari.

- Advertisement -

In 2016, The World Bank had launched the ‘Solar Rooftop Financing Program’ being implemented by the State Bank of India (SBI).With a view to addressing the issues on the debt side and to give a fillip to the sector, SBI has availed a $625 million line of credit from World Bank specifically, for financing RTS projects across the country through its identified branches. A countrywide customized financial product has been developed by SBI which covers 75 per cent of the project financing requirement along with other favourable terms such as repayment period, moratorium, and security.

“A large amount (average INR 8 and higher per unit) is being paid by the MSMEs for power consumption, which contributes to up to one fifth of the overall production costs. To assist MSMEs in implementing rooftop solar projects, the Ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses,” added Gadkari.

“The World Bank is committed to the cause of MSMEs and an investment in this industry will aid India’s aim to become ‘Atmanirbhar’ or ‘self-reliant’. By facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve a twin objective of greening the economy and uplifting MSMEs to become highly competitive by reducing its power costs,” noted Junaid Ahmad, Country Director India, World Bank.

The World Bank is working with the Ministry of Micro, Small & Medium Enterprises, to bring in a credit guarantee mechanism catering to lending to MSMEs who would like to reduce their energy expenses in the long term by investing in rooftop solar.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

India’s Laptop Import Licensing System Questioned Again in WTO

0
WTO recently published a statement of its CIL meeting where China and Japan formally raised concerns about India’s laptop import monitoring system, which was...

Hyundai Mobis To Invest More In EV Parts, Chips

0
Hyundai Mobis, the top auto parts manufacturer in South Korea, announced its intention to increase investment in electric vehicle (EV) components and automotive chips...

South Korea Announces $19B Support Package for Domestic Chip Industry

0
On May 23, 2024, South Korean President Yoon Suk Yeol announced a package worth 26 trillion won ($19 billion) to boost and empower its...

Important Sectors

Hyundai Mobis To Invest More In EV Parts, Chips

0
Hyundai Mobis, the top auto parts manufacturer in South Korea, announced its intention to increase investment in electric vehicle (EV) components and automotive chips...

South Korea Announces $19B Support Package for Domestic Chip Industry

0
On May 23, 2024, South Korean President Yoon Suk Yeol announced a package worth 26 trillion won ($19 billion) to boost and empower its...

Vitesco Tech Delivers Electric Drive For Honda CR-V PHEV

0
This is the first integration of a Vitesco Technologies drive system into a hydrogen fuel cell electric vehicle (FCEV). Vitesco Technologies will provide its EMR3...

HCLTech to Take Over HPE’s Communication Tech Assets for $225M

0
IndianTech Giant HCLTech announces to expand its strategic partnership with Hewlett Packard Enterprise, buying the latter’s certain tech assets for $225M in cash.  IT service...

Google To Begin Pixel Production At Foxconn, Dixon In September

0
According to sources, Google's collaboration with Foxconn complements its plan to manufacture Pixel smartphones at the Dixon facility. Google is set to partner with Foxconn...

Manufacturing

Hyundai Mobis To Invest More In EV Parts, Chips

0
Hyundai Mobis, the top auto parts manufacturer in South Korea, announced its intention to increase investment in electric vehicle (EV) components and automotive chips...

Vitesco Tech Delivers Electric Drive For Honda CR-V PHEV

0
This is the first integration of a Vitesco Technologies drive system into a hydrogen fuel cell electric vehicle (FCEV). Vitesco Technologies will provide its EMR3...

Google To Begin Pixel Production At Foxconn, Dixon In September

0
According to sources, Google's collaboration with Foxconn complements its plan to manufacture Pixel smartphones at the Dixon facility. Google is set to partner with Foxconn...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...