Sustainable Finance Scheme

1. New or existing Micro, Small, and Medium Enterprises (MSMEs) that come under the MSMED Act, 2006, will be eligible for funding under the scheme.
2. In the case of existing MSMEs, they must be financially stable, have a proven track record, and must have no defaults with banks or institutions.
3. Funding will be provided to units that have a minimum credit rating of investment grade as per the internal credit rating model.
4. Funding is provided for biomass gasifier power plants, mini hydel power projects, wind energy generators, solar power plants, etc., for non-captive or captive use.
5. Funding is provided for MSMEs that invest in waste management.
6. Assistance is provided to OEMs that manufacture cleaner production and energy-efficient equipment. However, the OEM must be an MSME and must supply products to a sufficient number of MSMEs.

Interest Rate for Sustainable Finance Scheme

The interest rate of the scheme is the same as the standard lending rate given by the credit rating of MSMEs.

Sustainable Finance Scheme Eligibility Criteria

The eligibility criteria that must be met in order to receive assistance under the scheme are mentioned below:

1. Funding is provided for mini hydel power projects, biomass gasifier power plants, solar power plants, wind energy generators, etc., for non-captive or captive use.
2. Assistance is provided to OEMs that manufacture energy-efficient and cleaner production equipment. However, the OEM must be an MSME and must supply products to a sufficient number of MSMEs.
3. Funding is provided for investments in waste management.

Fiscal Incentives

Assistance is provided in the form of working capital or term loans to ESCOs that implement Renewable Energy Project/ cleaner production/ EE. However, the ESCO must be an MSME or a unit that the ESCO provides its services to must be an MSME.