MSMEs to get Rs 15,000-crore subsidy to adopt green tech
Aug 13, 2024
Synopsis
The government is planning a ₹15,000 crore green initiative for micro, small, and medium enterprises (MSMEs), set to launch by early 2025. This scheme aims to support MSMEs in adopting green technologies, setting up material recovery facilities, and improving waste management. Additionally, an e-marketplace for recyclables will connect manufacturers with waste collectors, promoting efficient price discovery. The Bureau of Energy Efficiency will play a key role in monitoring and enhancing energy efficiency among MSMEs. The initiative is designed to reduce the carbon footprint of MSMEs and boost their global competitiveness.
The government is firming up a ₹15,000 crore green scheme for micro, small and medium enterprises (MSMEs) and creating an e-marketplace for recyclables connecting manufacturers and waste collectors.
The scheme, which is expected to be launched by early 2025, includes setting up material recovery facilities (MRF) and facilitating product treatment after consumption. Besides, a dedicated body is expected to be set up to oversee the transition of MSMEs to green energy and to formulate MSME-specific green policies, said officials aware of the developments.
"Under the scheme, MSMEs will receive a subsidy for setting up MRF, navigating extended producer responsibilities concerning safely disposing end-of-life products and adopting other components of the scheme," said one of the officials, who did not wish to be identified.
Anil Bhardwaj, secretary general, Federation of Indian Micro, Small & Medium Enterprises, said, "By providing financial incentives, capacity building and policy support, the initiative empowers MSMEs to reduce their carbon footprint, adopt green technologies and create new business opportunities. This not only benefits the environment but also enhances the competitiveness of MSMEs in the global market."
An e-marketplace for recycling is likely to be created as part of the scheme, a common platform for manufacturers and waste collectors that will allow free flow of information between them.
At present, the optimum price discovery of the material collected during waste collection is difficult since there is an information gap regarding the best available price of the material. "The e-market portal will allow different manufacturers to bid for the material collected, thereby helping the waste collectors get higher prices," said the official. The scheme is likely to pivot around energy efficiency and alternative fuel.
Decarbonisation, which is also one of the pillars of the scheme, will be achieved through a data-centric approach, according to officials. The Bureau of Energy Efficiency (BEE) could be engaged to measure emission levels of MSMEs and baselining, they said.
"The baselining is likely to be done by the BEE, and the energy efficiency body will also audit the performance of entities, assessing how much energy MSMEs have saved," said the official.
For the scheme, inputs are being taken from stakeholders such as the new and renewable energy ministry, environment, forest and climate change ministry, and power ministry, along with private consultancies such as Boston Consulting Group and McKinsey & Company.
[The Economic Times]
