The GEF-5 project focuses on improving energy efficiency in the MSME industrial sector of India by adopting an innovative approach to strengthen the market "push" and "pull" forces that contribute to industrial energy efficiency in one hand, and through a model of capacity building and technology adoption on the other hand, it would try to ensure that the there is significant ground impact in raising energy efficiency in the specified industrial clusters even beyond the project period. The proposed approach is expected to develop local technological capacity and adoption through training and awareness of industrial technical personnel and end-users; consequently. The proposed project also intends to "fill the gaps" of previous projects focusing on energy consumption improvements in MSMEs through the provision of an innovative financing mechanism, namely an EESL-MSME Revolving Fund (EMRF). The availability of the Fund, combined with trainings for the development of bankable project proposals and awareness raising, will simplify and improve financing options for MSMEs in the targeted clusters..
To be more precise, the overall project objective is to promote the implementation of energy efficiency in the MSME sector; to create and sustain a revolving fund mechanism to ensure replication of energy efficiency measures in the sector; and to address the identified barriers for scaling-up energy efficiency measures and consequently promote a cleaner and more competitive MSME industry in India. The desired objective is planned to be achieved in a time span of 36 months. Total cost reserved for this project is 31.3 million USD.
The proposed project has 4 substantive components:
This project will prove to be a boon for the MSME units who have been waiting long to switch over the Energy Efficient alternatives.