Efficiency in MSMEs
• Set up by an Act of Parliament in April 1990.
• Development Finance Institution (DFI)
Promotion, financing and development of MSMEs and to co-
ordinate the functions of institutions serving the sector.
Small Industries Development Bank of
63 Million MSMEs
Employment - 111 Mn people
2nd largest employer after
Value addition to economy:
45% of total manufacturing output,
30% contribution to GDP,
>8000 products manufactured,
40% of total exports.
MSMEs – Backbone of Indian Economy
o High operational inefficiency
o Technology obsolescence
o Resource intensive
o Low profit margins
o Low technical capabilities
o Lack of awareness amongst
MSMEs consume ~25% of total
industrial energy consumption.
Typical Indian MSMEs
storage Open heating
Improper refractory Improper Insulation Incomplete
Savings potential of upto 30% in energy & resources costs
SIDBI’s initiatives for Sustainable Development in MSMEs
• Introduced schemes for financing Energy Efficiency (EE) & Cleaner Production
projects in MSME sector.
• Entered into strategic partnership with BEE, TIFAC, The World Bank, DFID, JICA, KfW,
GIZ & AFD for promoting & financing clean & EE investments in MSME sector.
• Created a dedicated team of experts housed at “Energy Efficiency Centre (now called
Green Climate & Sustainable Development Initiatives)” for focused approach.
• Conducted awareness campaigns, focused group meetings, energy audits, pilot
interventions in MSME clusters.
Journey so far – Work in Progress
Partial Risk Sharing
[End to End
Efficiency at MSME
Lines of Credit
on EE/CP –
(JICA, AFD, KFW
End to End Energy Efficiency (4E) Financing Scheme
Detailed Energy Audit
Preparation of DPR
Loans from Rs. 10 Lakh to Rs.
Up to 90% of total project cost
Concession in interest rate –
1.7% to 3.5%
- EE retrofit projects
- Expansion projects
- RE projects (however RE component
alone is not allowed)
Highlights of Achievements
No. of MSMEs & ESCOs : 7000+
EE/RECP Loans : INR 65 billion (~ $ 1 billion)
Electricity Saved : ~ 1043 Mn units annually
Thermal energy saved : ~ 650,000 Mn kCal annually
Emission Reduction : ~ 1 million t CO2 eq. annually
Guarantees to 35 sub-projects with guaranteed amount of USD 22.06
million (INR 1,433.20 million), leveraging a total EE Investment of 2.95
times i.e. USD 64.99 million (INR 4,225.50 million).
Energy Audits & DPRs : 1600+
Implementation of EE projects : 900+
Results verified in 637 MSMEs through third party M&V.
Identified direct EE investments : INR 3322 million
Estd. Emission Reduction : 2.72 million tCO2
1500+ personnel from 75 FIs and
750+ energy audit professionals & ESCOs
End to End
E-mail id – email@example.com
Aug. 25, 2021
OECD-CEFIM-BEE Energy Efficiency Platform and Protocols webinar, 15 July 2021