The title slide presents the MSE-GIFT Scheme, with the main title "MSE Green Investment & Financing for Transformation." It is a Ministry of MSME initiative for green financing, featuring May 2024 guidelines to empower MSEs for sustainable transformation.

MSE Green Investment & Financing for Transformation

Ministry of MSME Initiative for Green Financing Guidelines - May 2024 Empowering MSEs for Sustainable Transformation

Source: Ministry of MSME Guidelines - May 2024

The Overview slide describes a scheme launched by the Ministry of MSME to support green investments in Micro and Small Enterprises (MSEs). It has a total outlay of Rs. 2,000 crore over 5 years, focusing on low-carbon transitions and eco-friendly projects.

Overview

• Launched by Ministry of MSME
• Supports green investments in MSEs
• Total outlay: Rs. 2,000 Cr over 5 years
• Focus: Low-carbon transition & eco-friendly projects

Source: MSE-GIFT Scheme Guidelines (May 2024)

This slide's rationale addresses climate change, sustainability, and the green finance gap for MSEs. It promotes energy efficiency, clean tech, and aligns with India's net-zero goals by 2070.

Rationale

• Addresses climate change and sustainability
• Bridges green finance gap for MSEs
• Promotes energy efficiency and clean tech
• Aligns with India's net-zero goals by 2070

Source: MSE-GIFT Scheme Guidelines (May 2024)

The Objectives slide lists four key goals: enhancing access to green financing and reducing interest costs for MSEs. It also focuses on mitigating risks for lenders and building awareness via IEC campaigns.

Objectives

• Enhance access to green financing
• Reduce interest costs for MSEs
• Mitigate risks for lenders
• Build awareness via IEC campaigns

Source: MSE-GIFT Scheme Guidelines (May 2024)

The "Scheme Components" slide presents four key features of a green financing initiative for MSEs: interest subvention (up to 3% reduction for 7 years), risk sharing (15% credit guarantee), awareness campaigns, and capacity building training. These components aim to support lenders and MSEs in adopting green investments.

Scheme Components

{ "features": [ { "icon": "📉", "heading": "Interest Subvention", "description": "Up to 3% interest reduction for 7 years on eligible green loans." }, { "icon": "🛡️", "heading": "Risk Sharing", "description": "15% credit guarantee to cover lender risks in MSE green financing." }, { "icon": "💡", "heading": "Awareness Initiatives", "description": "Campaigns raising awareness on green financing for MSEs and lenders." }, { "icon": "📚", "heading": "Capacity Building", "description": "Training programs enhancing skills for MSEs and lenders in green investments." } ] }

Source: MSE-GIFT Scheme Guidelines (May 2024)

Eligible beneficiaries include MSEs registered on the Udyam portal and PLIs such as banks, NBFCs, and SIDBI. The focus is on green loan-seeking MSEs, excluding high-risk sectors.

Eligible Beneficiaries

• MSEs registered on Udyam portal
• PLIs: Banks, NBFCs, SIDBI
• Focus: Green loan-seeking MSEs
• Excludes high-risk sectors

The slide outlines eligible projects for loans from Rs. 10L to Rs. 5Cr, split into Energy Efficiency (solar installations, EVs, equipment upgrades promoting renewable adoption for MSEs) and Resource Conservation & Clean Processes (waste management, water conservation, clean manufacturing for sustainable operations).

Eligible Projects

Min Loan: Rs. 10L | Max Loan: Rs. 5Cr

| • Solar power installations

• Electric Vehicles (EVs)
• Energy-efficient equipment upgrades

Promoting renewable energy adoption for MSEs. | • Waste management systems

• Water conservation initiatives
• Clean manufacturing practices

Sustainable operations reducing environmental impact. |

Source: MSE-GIFT Scheme Guidelines (May 2024)

The Implementation & Disbursal workflow outlines four steps for green project loans: MSE submits an application to the Primary Lending Institution (PLI), followed by technical verification and eligibility assessment by an Empanelled Agency. PLI then handles loan sanction, disbursal, and interest subvention claims, with ongoing monitoring and risk sharing by PLI and the Agency if the account becomes NPA.

Implementation & Disbursal

{ "headers": [ "Step", "Owner", "Key Activities" ], "rows": [ [ "1. Application", "MSE", "MSE submits green project loan application to Primary Lending Institution (PLI)" ], [ "2. Verification", "Empanelled Agency", "Green project technical verification and eligibility assessment" ], [ "3. Sanction & Claim", "PLI", "Loan sanction, disbursal, and interest subvention claim submission" ], [ "4. Monitoring & Risk Share", "PLI & Empanelled Agency", "Ongoing oversight; risk sharing activated if account becomes NPA" ] ] }

Source: MSE-GIFT Scheme Guidelines (May 2024)

Governance and oversight are handled by nodal agencies NSIC and SIDBI, with empanelled TA providers for verification. The system includes a digital portal for claims processing, annual audits for compliance, and MIS reporting for monitoring.

Governance & Oversight

• Nodal agencies: NSIC and SIDBI
• Empanelled TA providers for verification
• Digital portal for claims processing
• Annual audits ensure compliance
• MIS reporting for monitoring

Source: MSE-GIFT Scheme Guidelines (May 2024)

The "Expected Impact" slide highlights targets for 10,000 micro and small enterprises with ₹8,000 Cr in total financing. It also projects 1.5 Mn tCO2e GHG reduction per year and 50,000 green jobs created.

Expected Impact

• 10,000: Target MSEs

Micro & Small Enterprises

• ₹8,000 Cr: Total Financing

Credit facilitation target

• 1.5 Mn: GHG Reduction

tCO2e per year

• 50,000: Green Jobs

Employment generation Source: MSE-GIFT Scheme Guidelines (May 2024)

MSE-GIFT is presented as a catalyst for green growth in the MSE sector. The slide calls for immediate applications via empanelled PLIs, contact with MSME Ministry/SIDBI, and commits to a sustainable India.

Conclusion & Call to Action

MSE-GIFT: Catalyst for green MSE growth.

Apply now via empanelled PLIs. Contact: MSME Ministry/SIDBI.

Towards a sustainable India! 🌿

Towards a sustainable India!

Source: MSE-GIFT Scheme Guidelines (May 2024)