The Sustainable Finance Scheme was initiated during 2012-13 by SIDBI to provide financial assistance to sustainable advancement projects that supply power efficiency and cleaner production but are not comprised under international or bilateral lines of credit.
A wide variety of sustainable development projects like renewable Power projects; the Bureau of Energy Efficiency, green buildings, green microfinance, and eco-friendly labeling, etc. are involved in the scope of this scheme.
In addition, thefinancial assistance has also been rendered to Energy Service Companies and original Equipment Manufacturers involved in manufacturing energy-efficient and reliable production machines.
Under this scheme, the rate of interest applicable would be the standard lending rate by the credit rating of MSMEs.
New and existing MSME units are suitable for this scheme.
The MSMEs that are already running, should have a satisfying track history of past performance and a healthy financial position
Existing MSMEs that are not insolvent to institutions or banks are eligible to apply for it
The units should have the least credit rating of investment grade or its equivalent according to the in-house credit rating model.
Under this scheme, all sustainable development projects like renewable energy projects, Bureau of energy efficiency (BEE) star rating, green microfinance, green buildings, and eco-friendly labeling are covered, and MSMEs related to these fields are eligible.
Businesses having any kind of potential CP investments including waste management can get support from it.
OEMs that produce products related to energy efficiency, cleaner production, green machinery, and equipment are suitable. But either the OEM should be an MSME or it should be providing its products to a large number of MSMEs
Sustainable Finance Scheme provides assistance and provides term loans or working capital to the ESCOs that implement EE, CP, and Renewable Energy Projects. But to be eligible for this grant, the ESCO should be an MSME, or otherwise the unit to which it delivers its offerings has to be an MSME.
The scheme aims to assist the whole value chain of energy efficiency, sustainable development projects, and cleaner production that lead to significant improvements in EE, and CP sustainable development in the MSMEs and which are presently not covered under the existing sustainable financing lines of credits.