Financing Schemes in India
The following schemes provide assistance for installing low carbon technologies
Credit Linked Capital Subsidy Scheme (CLCSS)
The Credit Linked Capital Subsidy Scheme (CLCSS) is operated through the office of the Development Commissioner, Ministry of MSME (DC-MSME). CLCSS aims at facilitating technology upgradation of MSMEs in specified products/sub-sectors by providing upfront capital subsidy for the induction of well- established and improved technologies approved under the Scheme.
CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE)
The Ministry of MSME, Government of India, launched the Credit Guarantee Scheme (CGS) with the aim to strengthen credit delivery system and facilitate flow of credit to the micro and small enterprise (MSE) sector. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has been set up by SIDBI and Government of India to operationalize CGS.
ENERGY EFFICIENCY SERVICES LTD (EESL)
EESL is a ‘super-ESCO’ set up under Ministry of Power to promote energy efficiency. EESLis a joint venture of four National Public Sector Enterprises – NTPC Limited, PFC, REC and POWERGRID.
The Export-Import Bank of India (Exim Bank) is a specialized financial institution wholly owned by the Government of India with presence in Indian and foreign cities around the world. Exim Bank finances, facilitates and promotes India’s international trade through a range of financial products.
FINANCING SCHEMES FOR SUSTAINABLE DEVELOPMENT
Under JICA’s Line of Credit for energy saving projects in India’s MSME sector, SIDBI provides loans to finance energy efficiency, cleaner production and emissions control among MSMEs.
GOVERNMENT FINANCIAL SUPPORT SCHEMES
The Government of India, as well as state governments, have launched various schemes to provide financing support to entrepreneurs in diverse industrial/manufacturing sub-sectors.
INDIA SME TECHNOLOGY SERVICES LTD. (ISTSL)
India SME Technology Services Ltd. (ISTSL) is a joint venture of five Indian banks— SIDBI, SBI, OBC, IOB, and Indian Bank. ISTSL offers a range of services that enable MSMEs to tap opportunities at the global level for new and emerging technologies or to establish business collaboration.
PARTIAL RISK GUARANTEE FUND FOR ENERGY EFFICIENCY (PRGFEE)
PRGFEE is a risk sharing mechanism to provide participating financial institutions (PFIs) with a partial coverage of risk involved in extending loans to ESCOs for EE projects.
SBI Global Factors Ltd
SBI Global Factors Ltd (SBIGFL) is a subsidiary of State Bank of India. It is a Non Banking Financial Company (NBFC) that provides Domestic and Export Factoring services under one roof
Tamilnadu Industrial Investment Corporation Ltd
Tamilnadu Industrial Investment Corporation Ltd (TIIC) is a State Financial Corporation that fosters industrial development in Tamil Nadu by providing financial assistance to industries for purchase of land, machinery and construction of buildings. About 90% of TIIC assistance goes to the MSME sector; of this, about 40% goes to first generation entrepreneurs.
Tamilnadu Small Industries Development Corporation Limited
Tamilnadu Small Industries Development Corporation Limited (TANSIDCO), a state government undertaking, plays a catalytic role in the promotion and development of small scale industries in Tamil Nadu through schemes in key areas like: development of industrial estates with infrastructure facilities and provision of work sheds & developed plots; raw materials supply; marketing assistance; and guidance to entrepreneurs.
ZERO DEFECT ZERO EFFECT (ZED)
Under the ZED initiative, Government of India is implementing the ‘Financial Support to MSMEs in ZED Certification Scheme’.