The 4E Scheme for Energy Efficiency

The scheme has been launched jointly by India SME Technology Services Ltd. (ISTSL) in association with the World Bank on the occasion of “World Environment Day” on June 5, 2014. The main objective is to implement energy efficiency measures on an end-to-end basis. For meeting part costs of (i) capital expenditure including for the purchase of equipment/machinery, installation, civil works, commissioning, etc. (ii) Any other related expenditure required by the unit, provided it is not more than 50% of (i). The scheme by the Indian government, also, it aims to help startups finance second-hand machinery/equipment for use.

Who can register?

• MSME units in the manufacturing or services sector.
•  Applicant unit should be in operation for at least three years and should have earned cash profit in the last two years of operation and should not be in default to any bank/FI.
• Minimum credit rating of SME4/SER4/CR5 or its equivalent.
• The unit should have undergone the process of Detailed Energy Audit (DEA) through a technical agency / consultants having BEE certified Energy Auditors. Further, the Detailed Project Report (DPR) prepared by the technical agency / consultant should have been vetted by EEC, SIDBI.
• The unit should not have availed Performance Linked Grant under the WB-GEF Project for the proposed EE Project.
• The unit should be in compliance with the Environment & Social Management Framework.

Benefits:

1. Up to 90% of the project cost with minimum loan amount of INR 10 Lakhs and maximum loan amount not to exceed INR 150 Lakhs per eligible borrower can be granted under this scheme.
2. Eligible loan amount should not exceed one-fifth of the total turnover of the applicant unit.
3. The repayment period including initial moratorium period of up to six months, shall not be more than 36 months for loans up to INR 100 Lakhs and 60 months for loans beyond INR 100 Lakhs.
4. The MSE unit has to pay only INR 30,000 and applicable taxes and the balance fee will be paid by SIDBI to auditors, while for the medium enterprises the amount is INR 45,000.

How to register?

MSMEs can directly approach to ISTSL or BEE certified energy auditor with the following-
(i) Filled in application form
(ii) Filled in questionnaire
(iii) Advance money from the unit as per the application form
(iv) DIC / SSI / MSME registration certificate / Udyog aadhaar certificate (Any one latest document)
(v) GST Details