MSMEs Get USD 100 Mn Green Financing From SIDBI-AFD Deal

New Delhi, Feb 13 (KNN) The Small Industries Development Bank of India (SIDBI) has entered into a significant credit facility agreement with the French Development Agency (AFD), securing a USD 100 million funding commitment to enhance green financing solutions for Indian micro, small, and medium enterprises (MSMEs). 

This strategic partnership is designed to accelerate sustainable growth initiatives and facilitate India's transition toward a low-carbon economic model.

The credit line will enable SIDBI to expand its financial support to MSMEs seeking to implement energy-efficient technologies, adopt renewable energy solutions, and incorporate climate-friendly business practices. 

This collaboration capitalises on AFD's extensive experience in climate financing and SIDBI's deep understanding of the MSME ecosystem to deliver targeted sustainable development solutions.

Speaking about the partnership, AFD Country Director for India, Lise Breuil, emphasised the agreement's strategic importance in supporting India's environmental objectives. 

"The USD 100 million credit line signed with SIDBI marks a crucial step in empowering MSMEs to invest in sustainable solutions," Breuil stated. 

She highlighted that this initiative complements AFD's existing work on the Greening Indian Financial System Platform, which focuses on incorporating sustainability measures into Indian financial institutions' strategies.

SIDBI Chairman and Managing Director Manoj Mittal reinforced the significance of this collaboration in advancing India's national net zero commitments. 

"This partnership marks a significant step towards India's national net zero commitments," Mittal remarked. 

He emphasised that the credit facility would enable SIDBI to provide comprehensive long-term financial solutions to help MSMEs transition to cleaner technologies and enhance their energy efficiency while reducing their environmental impact.

The partnership represents a strategic alignment between both institutions' commitment to sustainable economic development and climate resilience in emerging markets. 

Through this initiative, SIDBI and AFD aim to create a more sustainable and environmentally conscious MSME sector, contributing to India's broader goal of achieving carbon neutrality by 2070.

(KNN Bureau)