Credit line for demand-side energy efficiency

completed

The FC measure includes the financing of energy efficiency investments in the commercial sector in India. The aim of the measure is to increase the energy efficiency of small and medium-sized enterprises (SMEs) and to reduce greenhouse gas emissions in the Indian SME sector through needs-based access to investment loans. In addition, the SIDBI's capacity to sustainably finance energy efficiency investments is to be further strengthened. The project thus makes a contribution to a broad-based, technically and economically efficient as well as socially and ecologically sustainable energy supply in India (DC program objective). The project is directly linked to the project Promoting energy efficiency measures in SMEs (BMZ No. 2008 66 111 / 2008 70 162), which was audited in February 2016, and is intended to further develop the existing funding approach and establish it in the Indian market. The target group of the project are Indian SMEs that intend to invest in increasing energy efficiency. The funding requirement for the investments to be financed is estimated at at least EUR 146 million. A low-interest loan of up to EUR 110 million is planned to finance the project measures. Of this, EUR 70 million was pledged at government level in 2010 (BMZ No. 2010 66 182) and a further EUR 40 million was pledged during the government negotiations in 2014 (BMZ No. 2014 68 305). The EUR 40 million mentioned was covered as a stock check in the program proposal of September 12, 2014. An accompanying measure of EUR 1.5 million (BMZ No. 2010 70 101) is also planned. The loan was reduced from USD 110 million to USD 69.6 million in December 2019. The project sponsor and borrower is the state-owned development bank Small Industries Development Bank of India (SIDBI). The loan was granted without a state guarantee from the Republic of India.