BEE-GEF-WB Project

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Given the existing market barriers observed in India, the Project “Financing Energy Efficiency at MSMEs” (FEEMP) was conceptualized as a part of the GEF Programmatic Framework for Energy Efficiency in India. The project is envisaged to systematically support development of a programmatic approach to aggregate demand for EE investment in MSME industrial clusters, and to create a sustainable mechanism for identifying, preparing, and financing these proposals at the local level. The GEF implementing agency for this project is the World Bank, and the two executing agencies are the Bureau of Energy Efficiency (BEE) and Small Industries Development bank of India (SIDBI).

The core activities under the project include building capacity and awareness among various stakeholders, increasing investment in energy efficiency, and Knowledge Management& Sharing. The capacity built in apex institutions and among key stakeholders through this project as well as lessons learnt would have direct benefits to other Government of India projects on Promoting Energy Efficiency at MSME clusters.

The work as envisaged under the project has already been completed at the MSMEs located in the clusters around Pune, Kolhapur, Ankleshwar, Tirunelveli, Faridabad, Ludhiana, Varanasi, Dehradun, Thane and Delhi-NCR, and benefits have been derived by these industries mainly through realization of major energy savings and reduced CO2 emissions arising out of implementation of measures as recommended under the project.

The project outcomes in these clusters have been highlighted in India’s INDC document and have motivated the project stakeholders to work more rigorously in newer clusters/sectors that are high on energy consumption. Towards this, the World Bank along with BEE and SIDBI have identified additional MSME sectors namely paper, ceramic, pharmaceuticals, textile, food processing and agro-based industries for undertaking various project activities up to April 2019.

In order to build awareness amongst the intended beneficiaries of the project about its objectives, the technical and financial support available for the benefit of the MSMEs in the project clusters, and also about the Knowledge Sharing and Capacity Building initiatives in the additional clusters as identified for the upcoming phase of the project, it will be necessary to make concerted efforts at reaching out to MSMEs and allied stakeholders. Keeping this in view it is proposed to periodically update the information on the existing Knowledge Portal ( that has been developed under the project for the benefit of its stakeholders.

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