New Delhi, May 1 (KNN) At least 500 micro and small enterprises (MSEs) have applied for incentives under two key government schemes aimed at encouraging green investments and the circular economy.

This strong response came within just three months of the launch of the Green Investment and Financing for Transformation (GIFT) and Scheme for Promotion and Investment in Circular Economy (SPICE) initiatives in December 2023, reported ET.

According to officials, these enterprises are gearing up to embrace eco-friendly technologies and cater to the growing consumer preference for environmentally conscious products.

As a testament to the schemes' early success, a staggering Rs 380 crore in loans has already been disbursed to MSEs under these programs.

The GIFT scheme offers a 2 per cent annual interest subvention for five years on loans up to Rs 2 crore to MSEs adopting environment-friendly technologies.

On the other hand, SPICE provides capital subsidies to MSEs for brownfield projects, incentivising them to expand or upgrade their existing circular economy projects.

Recognising the cash crunch often faced by MSEs, the government is actively demonstrating the tangible benefits of adopting greener and more efficient technologies.

Officials are categorising MSEs into those willing to adopt sustainable practices and those reluctant, with a focused approach to showcasing the long-term savings and advantages, such as reduced energy consumption, to the latter group.

With a combined outlay of Rs 950.5 crore, SPICE will run from FY24 to FY27, while GIFT has an outlay of Rs 478 crore until FY26.

These schemes are expected to play a crucial role in facilitating the transition of MSEs towards a more sustainable and circular economic model, aligning with global climate regulations and consumer demands.

(KNN Bureau)