Vijayawada, Sept 22, (KNN) Small Industries Development Bank of India (SIDBI) and the Japan International Cooperation Agency (JICA) entered into a loan agreement for financing the micro, small and medium enterprises (MSMEs) energy saving projects in India.

In the first two phases of the programme implemented across the country, 60 billion Japanese Yen, that is Rs 3,000 crore was disbursed as loans in the last six years. In the third phase, spread over three years, Rs 1,500 crore worth of loans will be extended to the interested parties.

SIDBI Pricewaterhouse Coopers Pvt Ltd (PwC) and Vijayawada Chamber of Commerce and Industry (VCCI) jointly organised an awareness campaign on JICA-SIDBI MSME Energy Saving Project (phase-III) here on Monday.

On the occasion, SIDBI regional manager G Sampath Kumar said JICA extends third line of credit to SIDBI, which, in turn, finances energy-efficient machinery. They are targeting industries from energy-intensive MSME sectors like engineering, plastics, packaging, printing, textiles, food processing and chemicals.

As part of the loan agreement, SIDBI would finance to banks, state financial corporations and NBFCs for such projects, he said.

PwC Manager (Energy, Utility and Mining) Jayakrsihnan P Nair said JICA would extend 0.75 per cent interest subsidy on loans availed by the MSME entrepreneurs. This will encourage replacement of obsolete industrial furnaces, boilers or burners and introduction of additional equipment which improve performance of comparable to those of replacement.

Under the project, some 700 technologies have been identified and the units related to them have been shortlisted, he added. (KNN Bureau)