SIDBI Secures $215.6 Million From Green Climate Fund For Projects

The Small Industries Development Bank of India announced on Monday that the Green Climate Fund has approved a $215.6 million loan facility for one of its projects. The funding will be used to implement Financing Mitigation and Adaptation Projects in Indian small businesses, according to an official statement.

This initiative aims to support Indian micro, small, and medium enterprises in adopting low-emission and climate-resilient technologies, contributing to the country's net-zero targets.

Under this facility, small businesses in India will receive concessional loans to implement various mitigation and adaptation technologies. The funding includes a $200 million facility for concessional loans, while the remaining $15.6 million is grant support from the GCF. This grant will be used to build the capacity of various stakeholders, including MSMEs and participating financial institutions, to understand and adopt low-emission and climate-resilient technologies.

The FMAP programme is expected to result in greenhouse gas emission reductions of approximately 35.3 million tonne. The adaptation activities are anticipated to lead to significant water savings and enhance the resilience of vulnerable communities, benefiting over 10.8 million people, the statement said.

SIDBI also said that it has approved its first project under the facility, allocating $24.5 million to the Avaana Sustainability Fund to support the startup ecosystem.

(With inputs from PTI)