AP govt seeks interest subvention scheme for energy efficiency initiatives in MSMEs

Vijayawada, Jul12 (KNN) The Andhra Pradesh government has requested centre to introduce an interest subvention scheme to help attract entrepreneurs in MSMEs sector to take Energy Efficiency (EE) projects.

In this regard, on July 9, Energy secretary Srikant Nagulapalli has shot off a letter to Union Ministry of Power urging it to provide at least five per cent interest subvention as a part of a programme planned to be rolled out by the Bureau of Energy Efficiency (BEE).

In his letter to the secretary of Union Ministry of Power, Srikant Nagulapalli apprised the government that MSME units suffered economically due to COVID-19.

"Energy costs account for major share in MSMEs’ expenditure and hence EE has a large impact in boosting their economic conditions," he observed.

"Energy efficiency financing at attractive interest rates will play a pivotal role in achieving the targeted energy savings. The AP government has pursued with many industries to implement EE projects but as interest rates are not attractive, many industrial representatives are not willing to come forward," he pointed out. 

"In view of the above, it is requested to ensure providing at least five per cent interest subvention in the proposed scheme planned by the ministry which will attract many entrepreneurs to implement EE projects, ultimately helping the state as well as the nation achieve EE objectives," the state secretary requested.

The secretary further inform that AP was proactively taking up EE activity to achieve substantial energy savings to the tune of 25 per cent (15,000 Million units (MU)) of the total annual energy demand of 61,818 MU in areas of commercial, domestic, municipal, Industrial and agricultural sector etc.

He said that the state has so far saved around 2,932 MU with monetary savings of around Rs 2,014 crore. 

Srikant further informed that ECBC-2017 code was made mandatory for all commercial buildings and that the staff of housing, ward and village secretariat departments was being trained in ECBC Residential Code.

"A “Model Super ECBC building” is also being taken up in Visakhapatnam with support of BEE and the state government," he added.