SIDBI signs MoU for green technologies in SMEs
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
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