Sidbi to get Rs 1,800 crore from JICA

New Delhi: Small Industries Development Bank of India (Sidbi) has signed a loan agreement worth about Rs 1,800 crore with Japan International Cooperation Agency (JICA) for promoting energy efficiency in Micro, Small and Medium Enterprises (MSMEs).

Under the agreement, JICA will extend 30 billion Japanese yen (about Rs 1,800 crore) to promote energy saving in Micro, Small and Medium Enterprises (MSMEs) in India, Sidbi Deputy Managing Director N K Maini said here. The agreement signing comes at a time when Prime Minister Narendra Modi is on a 5-day official visit to Japan for boosting bilateral ties.

He said financial assistance to MSMEs directly or through indirect schemes to Primary Lending Institutions (PLIs) and Non-Banking Finance Companies (NBFCs), he said. This is the third line of credit (LoC). The earlier two LoCs worth Rs 3,600 crore have already been utilised and nearly 4,900 MSMEs have benefited from this. The implementation of this scheme has resulted in significant saving of energy and earning of carbon credit, he said, adding, facilitating environmental improvement and sustainable economic development in MSME eco-system.

The project will also have technical assistance components for the benefit of such intermediaries, which promote energy efficiency in the MSME sector, it said. The LoC preferential term is for a period of 15 years with a five-year moratorium and is backed by government guarantee, he said.