SIDBI : Sustainable Finance Scheme

Objective:

Sustainable Finance Scheme has been carved out with an objective to assist the entire value chain of energy efficiency (EE) / cleaner production (CP) and sustainable development projects which lead to significant improvements in EE / CP / sustainable development in the MSMEs and which are presently not covered under the existing sustainable financing lines of credits.

Eligibility:

New / existing MSME units, as per the definition of the MSMED Act 2006, shall be eligible for assistance under the scheme.
Existing units should have satisfactory track record of past performance and sound financial position and should not be in default to institutions/banks.
Units should have minimum credit rating of investment grade or its equivalent as per internal credit rating model

Activities eligible for assistance:

Renewable energy projects such as solar power plants, wind energy generators, mini hydel power projects, biomass gasifier power plants, etc. for captive/ non-captive use (i.e., power generated is sold/supplied to the grid / off-grid).
Any kind of potential CP investments including waste management
Green micro finance (micro loans upto INR 5 lakh to micro enterprises for green / energy efficient equipment measures)
Expenditure on energy audit / environment compliance audit / pollution control & management consultancy services.
Expenditure on green rating, BEE star rating, ecofriendly labeling, etc.
ISO 50001 / 14000 or other accredited energy /environmental certification.
CDM registration related expenditure.
Suitable assistance by way of term loan / working capital to ESCOs implementing EE / CP / Renewable Energy project provided either the ESCO should be an MSME or the unit to which it is offering its services is an MSME.
Suitable assistance to OEMs which manufacture energy efficient / cleaner production / green machinery / equipment. The assistance could be either in the form of Deferred Payment Guarantees, Channel Partner / Referral arrangement, etc. Either the OEM should be an MSME or it should be supplying its products to substantial number of MSMEs.