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The Small Industries Development Bank of India (SIDBI) has signed two agreements worth $500 million and $43 million with the World Bank, which will immensely benefit the MSMEs of the country.
The first agreement on MSME Growth, Innovation and Inclusive Finance Project for start-ups with a line of credit of $500 million is for risk capital finance, and for financing to service sectors and manufacturing MSMEs.
The project also targets women entrepreneurs (20 per cent of the project) and units in underserved (low income) states such as Uttar Pradesh, Madhya Pradesh, and West Bengal (25% of assisted units from low-income states).
The second agreement is Partial Risk Sharing Facility for Energy Efficiency (PRSF) project with a total outlay of $43 million consisting of guarantee fund corpus of $37 million, technical assistance of $4 million and $2 million to be implemented by Energy Efficiency Services Ltd.
The objective of the project is to support the Government of India's efforts to transform the energy efficiency (EE) market in India by promoting increased level of EE investments, particularly through energy service performance contracting (ESPC) delivered through Energy Service Companies (ESCOs).
It is estimated that the project is expected to provide credit guarantee to more than 500 ESCO implemented EE projects which would mobilise financing of the tune of $127 million.
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