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4E End to End Energy Efficiency-KHOJinINDIA

4E (End to End Energy Efficiency)

  • Small Industries Development Bank of India (SIDBI)
  • Alt text

    4E (End to End Energy Efficiency)

    Small Industries Development Bank of India (SIDBI)


    SIDBI launched the 4E Intervention on the occasion of “World Environment Day” on June 5, 2014 to provide technical backstopping and support MSME clients for reducing their power & fuel cost.

     


    Objective Of The Scheme
    • For implementing the Energy Efficiency measures on an end to end basis.                                                                                                                     
    • For meeting the part cost of capital expenditure including for the purchase of equipment, machinery, civil works, installation and commissioning.                                                                                                                                                                                                 
    • For enacting the Energy Efficiency measures as recommended in the project report any other related expenditure required by the MSME unit, provided it is not more than 50% of Project Cost                                                                                                                                                                     
    • Financing for second-hand machinery or equipment; purchase of land and construction of the building (except minor civil works) will not be taken up under the scheme

    The benefits of SIDBI 4E Scheme is given here:                                                                        

    • The 4E programme helps MSMEs improve the bottom line through energy savings (10 to 25%), by getting the services of Technical Consultants at a reasonable cost with assurance on the quality of services and savings                                                                                                                        
    • A back-to-back financing product support is granted with the help of the World Bank to offer loans to Energy Efficiency projects to MSME. The term loans are granted at concessional interest rates and on the softer term                                                                                                                                  
    • Normal Detailed Energy Audit, Implementation supports and M&V charges range from Rs. 1.5 Lakhs to 2.5 Lakhs. ISTSL also offers all services at very high concessional rates for all the services                                                                                                                                                               
    • Rs. 30,000 plus applicable taxes for micro and small category units (i.e. Rs. 35,400/- inclusive of taxes. Considering GST at 18%)                                                                                                                                             
    • Rs. 45,000  plus applicable taxes for medium category units (i.e. Rs.53,100/- inclusive of taxes. Considering GST at 18%)                                                                                                                                                       
    • Areas covered under the detailed energy audit are all the energy consuming equipment. Recommendations will be based on the retrofits in the existing system, new equipment installation and Technology up gradation                                                                                                                            
    • ISTSL grants its consultancy services for the implementation of all Energy Conservation Measures described in the Detailed Project Report after the Energy Audit conducted by ISTSL for three months from the date of Energy Audit                                                                                                                                  
    • lISTSL also provides its consultancy services in the field of resource efficiency, water audit and renewable energy like solar power generation and solar thermal energy                                                                                                                                                                                                  
    • ISTSL ensures the quality and performance of the review entirely                                                                                                                           
    • SIDBI can consider financing for the projects under its existing schemes                                                                                                                
    • The empanelled energy audit firm will do the energy audit.

    The eligibility criteria to obtain the SIDBI 4E Scheme is explained in detail:                                                      

    • The Eligible borrowers for SIDBI 4E scheme are Micro, Small or Medium Enterprises (MSME) in the Manufacturing or Service Sector                                                          
    • Applicant unit should be in operation for three years. The applicant should have earned cash profits in the last two years of operation                                                                                             
    • To avail Loan under SIDBI 4E scheme, the Plant has to submit Detailed Energy Audit (DEA) & Detailed Project Report (DPR).

                                                       

    • Application form                                                                                                                                                                                                                                                                                                                   
    • Filled in questionnaires                                                                                                                                                                                                                                                                                                      
    • Advance money from the enterprises as per the guidelines                                                                                                                                                                                                                                                                                                    
    • DIC / SSI / MSME registration certificate                                                                                                                                                                                                                                                                             
    • Udyog Aadhaar certificate                                                                                                                                                                                                                                                                                                                                                   
    • GST Documents

    The application procedure for 4E Scheme is explained in detail below:                                                                

    After the Detailed Energy Audit (DEA), the prospective borrower will furnish the Detailed Project Report (DPR) to SIDBI for its evaluation by EEC.                                                                                    

    The Borrower will have to submit an application to SIDBI BOs along-with a copy of the DPR vetted by EEC.                                                                                                                                                                                                                                                        

    Click Here for the Application Form

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