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Tuesday, November 5, 2024

SIDBI MSMEs Green Funding Initiative

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Introduction

In a significant move, the SIDBI MSMEs Green Funding Initiative is set to revolutionize sustainable business practices among Micro, Small, and Medium Enterprises. This comprehensive financial scheme supports the adoption of solar energy and the integration of energy-efficient machinery and processes, marking a pivotal step towards a greener future.

SIDBI’s Green Financing Offer

Mr. Jay Kumar Gupta, Deputy General Manager of SIDBI, highlighted the bank’s commitment to environmental conservation during the Open House Meeting on MSME Finance. He stated, “We invite MSMEs to avail of SIDBI’s financial schemes for installing solar energy and adopting energy-efficient machineries and business processes.” Under this initiative:

  • MSMEs can secure 100% loan funding.
  • Interest rates are as low as 7%-8%, contingent on the MSME’s credit rating.
  • Loans up to Rs. 7.5 crore are available without processing fees.
  • A 25% margin money is taken as security.
  • The scheme is in collaboration with Tata Power.

Public Sector Banks’ Growth Vision

Public sector banks are not far behind in supporting MSMEs. Mr. Ashwani Dhingra, Zonal Head of the Central Bank of India, shared the bank’s ambitious plan to achieve a 61% growth in MSME credit for the Mumbai and Goa Zone. He emphasized the bank’s focus on MSMEs, stating that their contribution to the overall credit in the zone is expected to rise from 12% to 15% by March 2024.

Private Banks Leading the Way

Private banks have been at the forefront of MSME lending, holding a 65% share in the outstanding MSME credit of the overall banking system. Mr. Sunil Daga, President – Business Banking Assets of Kotak Mahindra Bank Limited, reiterated the bank’s dedication to meeting the credit needs of MSMEs, boasting a 6% market share in this segment.

Equity Capital for MSMEs

Mr. Gagandeep Singh, Senior Manager at the National Stock Exchange of India Limited (NSE), highlighted the increasing trend of MSMEs raising equity capital from stock exchanges. He informed the audience about the 46 MSMEs that have listed on the NSE Emerge Platform in the current financial year, raising Rs. 1,400 crore in equity capital.

WTC Mumbai’s Commitment to MSMEs

WTC Mumbai is deeply committed to the growth and development of MSMEs. As part of this commitment, they will conduct Open House sessions periodically. These sessions serve as a platform for MSMEs to voice their issues and suggestions. Dr. Vijay Kalantri, Chairman of MVIRDC WTC Mumbai, emphasized that the feedback from these sessions would be relayed to financial institutions, ensuring that the concerns of MSMEs are addressed at higher levels.

Session Details

The recent Open House session on MSME Finance was moderated by Mr. Pankaj Chadha, Senior Partner at Jyoti Steel Industries. The event saw participation from a diverse group, including members of trade & industry, startups, and women entrepreneurs. Such sessions not only provide insights into the financial landscape but also foster collaboration and networking among industry stakeholders.

SIDBI MSMEs Green Funding
Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai addressing the Open House Meeting on MSME Finance at WTC Mumbai. Distinguished speakers seated on the dais (from left to right): Mr. Gagandeep Singh, Senior Manager, Primary Market Relationship, National Stock Exchange of India Ltd. (NSE), Mr. Ashwani Dhingra, Zonal Head, Central Bank of India, Mr. Pankaj Chadha, Senior Partner, Jyoti Steel Industries, Mr. Jay Kumar Gupta, Deputy General Manager, SIDBI, Mr. Sunil Daga, President – Business Banking Assets, Kotak Mahindra Bank Ltd. and Ms. Sherine Mendez, General Manager (Priority Sector Group), IDBI Bank

Conclusion

Dr. Vijay Kalantri, Chairman of MVIRDC WTC Mumbai, emphasized the importance of banks supporting MSMEs, especially during business slowdowns. He suggested the establishment of an MSME advisory committee and the implementation of expert committee recommendations on MSME credit. With such initiatives and support, the future of green and sustainable business practices in India looks promising.

SIDBI MSMEs Green Funding
Distinguished speakers at the Open House Meeting on MSME Finance at WTC Mumbai. (from left to right): Mr. Gagandeep Singh, Senior Manager, Primary Market Relationship, National Stock Exchange of India Limited (NSE), Mr. Ashwani Dhingra, Zonal Head, Central Bank of India, Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai, Mr. Pankaj Chadha, Senior Partner, Jyoti Steel Industries, Mr. Jay Kumar Gupta, Deputy General Manager, SIDBI, Mr. Sunil Daga, President – Business Banking Assets, Kotak Mahindra Bank Ltd. and Ms. Sherine Mendez, General Manager (Priority Sector Group), IDBI Bank

Relevant Reads: https://smeventure.com/sidbi-initiatives-for-msmes-2022/

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