Switch to solar, will be cost-effective: Gadkari to MSMEs

2021-03-03 17:08:17 Logistics News (Roadways & Railways)

Union Minister of Micro, Small and Medium Enterprises (MSME) and the Minister for Road Transport & Highways Shri Nitin Gadkari  has invited MSMEs to avail concessional debt finance to install rooftop solar for business efficiency. Rooftop Solar, he said, offers an excellent value proposition to MSMEs by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost.

Addressing a programme inaugurated virtually promoting awareness about rooftop solar (RTS) among MSMEs 2 March 2021 Gadkari said, “I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness..”

Rooftop solar employs more people thus contributing to economic recovery

Gadkari, further added that, “To assist MSMEs in implementing rooftop solar projects, the Ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses.”The Minister also highlighted that rooftop solar contributes in economic recovery as it employs more people than any other renewable energy.

Emphasising the importance of creating an awareness and large-scale adoption of rooftop solar for MSMEs, Shri B.B. Swain, Secretary,said, “The Ministry is geared up to facilitate measures to empower the MSMEs to become one of the top priorities for a resilient India.”

The World Bank - SBI’s $625 million has supported India’s significant Rooftop Solar roll out. Sh. Junaid Ahmad, Country Director India, World Bank, addressing the gatheringsaid that, “By facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve a twin objective of greening the economy and uplifting MSMEs to become highly competitive by reducing its power costs.”

When it comes to small ticket loans, co-lending is perhaps the way forward

Addressing the gathering, Sh. Dinesh Kumar Khara, Chairman, State Bank of India, said, “The idea is to really educate MSMEs about the benefit of adopting solar rooftop and achieving cost-competitiveness.. When it comes to small ticket loans, co-lending is perhaps the way forward and that is how we would like to support our smaller SMEs.”

MSMEs to reduce their energy expenses in the long term by investing in rooftop solar

The MSME sector, through SBI’s current rooftop solar (RTS) lending portfolio can leverage concessional debt and fulfil India’s ambitious target for large scale implementation of rooftop solar. The World Bank is working with the Ministry of Micro, Small & Medium Enterprises, to bring in a credit guarantee mechanism catering to lending to MSMEs who would like to reduce their energy expenses in the long term by investing in rooftop solar.

Other Logistics News (Roadways & Railways)

Advertisement