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T he J apan I nternational C ooperation A gency (JICA) has extended a Line of Credit to Small Industries Development Bank of India (SIDBI) for financing Energy Saving projects in Micro, Small and Medium Enterprises (MSMEs) Sector. The project is expected to encourage MSME units to undertake energy saving investments in plant and machinery to reduce energy consumption, enhance energy efficiency, reduce CO2 emissions, and improve the profitability of the units in the long run.

The financial assistance to MSMEs will be through SIDBI, as well as through refinance to banks / State Finance Corporations (SFCs) and Non Banking Financial Companies (NBFCs). The project also seeks to provide technical assistance to these financial institutions and MSME units for successful implementation of this Scheme resulting in Energy Saving in MSME Sector and thereby contributing to environmental improvement and socio-economic development in the country and address the climate change concerns.
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