Agreements signed for German Financial Assitance to MSMEs
The Small Industries Development Bank of India (SIDBI) and the German Government’s Development Bank KfW, signed a series of agreements here today for financial assistance totaling EURO 89.2 million (approx. Rs 622 crore) to promote the adoption of energy efficient and cleaner production technologies by micro, small and medium enterprises (MSMEs) in India. Two sets of agreements were signed in the Ministry of Finance in the presence of Mr. Kumar Sanjay Krishna, Joint Secretary, Ministry of Finance.
Under the Agreement, KfW will provide concessional loan and technical assistance to support financing of environmental investments in the MSME sector by SIDBI. The MSME Energy Efficiency Programme consists of a credit line of EURO 50 million and an accompanying grant component of EURO 0.5 million for technical support; the MSME Cleaner Production programme involves a credit line of EURO 38.5 million and a grant of EURO 0.2 million for technical support. The two agreements signed today support SIDBI’s initiatives to strengthen the MSME sector and further deepen the longstanding cooperation between SIDBI and KfW. MSMEs contribute critically to the Indian economy in terms of output, employment and exports.
Germany and KfW are longstanding partners of India. Since the 1950s, sectors like Energy, Financial Sector Development, Health, and Protection of the Environment and Natural Resources have received KfW support.