India’s Green Finance Scheme stands as a beacon of support for entities committed to driving environmental sustainability, fostering innovative projects, and promoting eco-friendly practices across various sectors. The scheme encompasses a diverse range of eligible borrowers and activities, aiming to encourage and facilitate green initiatives in the country.
Eligible Borrowers:
The scheme welcomes a wide spectrum of entities engaged in green value chains, including:
- Manufacturing and Service Providers: This includes entities such as Renewable Energy Service Companies (RESCOs), Energy Service Companies (ESCOs), Engineering, Procurement, and Construction (EPC) firms, vendors, and other stakeholders operating within the green value chain.
- Micro, Small, and Medium Enterprises (MSMEs): Both supply and demand-side MSMEs participating in green projects or providing services related to eligible activities under the scheme are eligible borrowers.
- Service Providers and Aggregators: Any entity acting as a service provider or aggregator linked with MSMEs involved in green projects is also included under the scheme.
Covered Activities:
The Green Finance Scheme encompasses a broad spectrum of eco-friendly activities, promoting innovation and sustainability, such as:
- Energy Efficiency Models: Initiatives focused on improving energy efficiency in various sectors.
- Water & Waste Management: Projects aimed at efficient water usage and sustainable waste management practices.
- Carbon Capture and Storage: Efforts addressing carbon capture and storage technologies for reducing carbon emissions.
- Green Buildings, Products, and Materials: Projects focusing on green construction practices and eco-friendly materials.
- Hybrid Transport: Initiatives promoting eco-friendly transportation solutions.
- Carbon Credit Mechanism, Green Bonds, Net Zero: Supporting mechanisms and instruments contributing to carbon credit generation, issuance of green bonds, and achieving net-zero carbon emissions.
- New and Innovative Green Projects: Encouragement for novel and inventive initiatives aligned with environmental sustainability.
Highlights of the Scheme:
The key features of the Green Finance Scheme include:
- Term Loans: Available in both Indian Rupee and Foreign Currency.
- Loan Amounts: Up to Rs 20 Crore for MSMEs and up to Rs 50 Crore for service providers/aggregators (subject to MSME linkage).
- Repayment Period: Extending up to 10 years, offering flexibility in repayment terms.
Conclusion:
India’s Green Finance Scheme emerges as a catalyst for promoting sustainable practices and green initiatives across diverse sectors. By providing financial support and encouragement to entities engaged in environmentally friendly projects, the scheme plays a pivotal role in fostering a more sustainable and eco-conscious future. It embodies the nation’s commitment to promoting green innovation, sustainability, and responsible development while enabling businesses to contribute positively to the environment.