Introduction

Promotion and adoption of green technologies and clean energy sources in MSMEs is critical for making MSMEs in India sustainable. In order to create an enabling ecosystem for the MSEs to adopt green technologies and practices, the Ministry designed and launched MSE GIFT sub-scheme under the RAMP programme at an outlay of Rs 478 Crore for 4 year duration.

Scheme components:

• Interest subvention of 2% per annum up to a term loan limit of Rs 2 crores. Rs 350 cr for interest subvention is estimated to leverage a total loan size of Rs 5800 crores.
• Risk sharing: Loans to MSEs up to Rs 2 crore would be covered under this component. Rs 125 crores will be used to provide credit guarantee to the participating MLIs (75% of guaranteed coverage for eligible loans).
• IEC

Eligibility:

MSME registered under the Udyam Registration portal are eligible under the Scheme. Member Lending Institution (MLIs): Scheduled commercial bank/ All India Financial Institution including SIDBI, Small Finance Banks/ Micro Finance Institutions/ Non-Banking Finance Companies can become a Member Lending Institution (MLI).

Sectors covered:

• Resource Efficiency, Waste Management
• Adaptations (water management, water efficiency, wastewater treatment)
• Green Buildings
• Environmental Protection (pollution control & prevention)
• Clean Transportation (electric, hybrid, EV Charging stations)
• Waste Management (Compressed Biogas, Bio-ethanol, e-waste, waste to energy, LNG, smart grids)
• Carbon Credit, Carbon Capture and Storage
• Any new innovative project with potential for a high impact on climate upon necessary approval

Expected Impact:

The Scheme is expected to benefit about 12000 MSMEs and lead to annual energy savings of 1600 GWh and an annual saving of around Rs. 1200 crores to MSMEs. It would help with 1.5 million tCO2 annual reductions avoiding an estimated social cost of carbon of Rs. 1100 crores.

Visit Website Scheme Guidelines
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