Mumbai, Nov 19 (UNI) Small Industries Development Bank of India (SIDBI) today signed a Memorandum of Understanding (MoU) with Ludhiana Hand Tools and Forging Envirocare, to enable small medium enterprises to embrace green technologies and facilitate environmental protection.
Ludhiana Hand Tools is a Special Purpose Vehicle (SPV) floated by SME units in Ludhian's steel forging cluster.
The MoU was signed in the presence of Chairman, Managing Director, SIDBI R M Malla and World Bank, South Asia Region, Energy and Environment, Team leader, Charles Cormier, an official statement said today.
Under the MoU, SIDBI will collaborate with the SPV to provide financial assistance to SMEs participating in the Clean Development Mechanism (CDM) project being implemented at the steel forging cluster in Punjab.
The statement said the SIDBI-Ludhiana SPV together will encourage SMEs to take up energy saving initiatives. Energy thus saved would reduce carbon dioxide emissions and result in accrual of Carbon Emission Reduction (CER) units. This would make SMEs eligible for revenues through sale of CER. The SPV's role would be to bundle the CER accruals and provide other services to the units.
The World Bank has given its backing to this initiative by agreeing to purchase 990,000 CER units from the SPV. The bank is also helping the SPV in the development and implementation of the CDM project. Around 300 SMEs were expected to benefit from the project.
Commenting on the development, Mr Malla said, ''SIDBI has been trying to provide innovative solutions to SMEs and we are happy to be their integral partner for the energy saving initiatives in the Ludhiana CDM project. With global warming becoming a prime concern area worldwide, we are proud to be facilitators of this green initiative.'' A brochure on CDM and carbon credits for SMEs' was also released by Mr Malla on this occasion. S C Ralhan, President of the SPV said, ''We are thankful to SIDBI and the World Bank for supporting SMEs for this project. The MoU will go a long way in improving the productivity of SMEs in the Ludhiana cluster.'' Stating that the World Bank would like to see the initiave being replicated by other SME clusters as well,Mr Charles Cormier said, '' SMEs in Ludhiana Steel cluster have taken the lead in energy conservation and adoption of green technology by this initiative.'' UNI IAS RN CS HT1630