New Delhi, Sep 2 (KNN) The Japan International Cooperation Agency (JICA) has extended  loan credit of about Rs 1800 crore to the Small Industries Development Bank of India (SIDBI) for promotion of energy saving projects in micro, small and medium enterprises (MSMEs).

“By improving energy efficiency in the MSME sector, this project is expected to contribute to environmental improvement and sustainable economic development in the country, as well as mitigating climate change,” said an official release from JICA.

The loan agreement was signed by SIDBI Deputy Managing Director NK Maini and JICA Chief Representative Shinya Ejima on Monday.

This is the third line of credit extended by JICA to SIDBI. The earlier two phases of agreements worth Rs 3,600 crore were signed in 2008 and 2011.

“This project will also aim to promote high energy-efficiency equipment, including equipment utilizing Japanese technology, and will allocate part of the funds to the health care sector for pilot projects,” JICA said.

The project has been scheduled to be completed by March 2019 with completion of loan process, it said. (KNN/ST)