In a rapid series of good news for the SME (Small and Medium Scale Enterprises); there is one more to add to it. The World Bank has announced that it will provide an additional amount of 5.19 million USD towards the development of the MSMEs sector such that they would adopt efficient means of energy consumption and usage.
The World Bank plans to make the grant through its IBRD (International Bank for Reconstruction and Development). The agreement for granting USD 5.19 million which comes under the grant of GEF (Global Environment Facility) which is meant for the ‘additional financing’ for the Financial Energy Efficiency under the MSMEs Project known as the ‘Programmatic Framework for Energy Efficiency’ was officially released by the World bank.
The main role of the IBRD is to provide financial loans and other kinds of financial assistance to the countries which have middle income-generating capabilities. Thus, IBRD of the World Bank acts as the main wheel for implementing the policies for the Global Environment Facility.
The project which was a parent to India and was known as the ‘India: FEEMP (Financing Energy Efficiency at MSME Project) came into effect from 29th September 2010. The original grant this project received from the IBRD of the World Bank was 11.3 million USD.
As per the release of the agreement, the main objective of the project known as the ‘Development Objective’ is to increase and enhance the demand for the consumption of the energy and to maximize the energy efficiency. It also aims to optimize the investments with regard to the energy efficiency in the micro, medium and small enterprises. The ability of the MSMEs to directly access the commercial finance should also be enhanced.
The main purpose of the AF (Additional Financing) is to upgrade the initiatives which were taken up by the parent project.