SIDBI partners with Tata Power to finance solar rooftop initiatives
Sep 13, 2023
Mumbai (Maharashtra) [India], September 13 : Small Industries Development Bank of India (SIDBI) has entered into an agreement with Tata Power to provide credits to Micro, Small, and Medium Enterprises (MSMEs) for setting up solar rooftops.
Speaking to ANI on the sidelines of Global SME Finance Forum-2023 in Mumbai, Deputy Managing Director at SIDBI Sudatta Mandal said, “We have entered into an MoU with them (Tata Power), wherein they will be referring their SME customers to us and we will be assessing those customers and provide credit to them for their solar rooftop installations."
Tata Power is one of the big suppliers of solar modules.
Sudatta Mandal added that SIDBI has set up a mission solar in its bank where they were planning to provide financing to 2,000 MSMEs for solar rooftops.
Further, Mandal also said SIDBI is working on a product, wherein it will be providing credit to these Udyam-registered informal enterprises.
Udyam certificate gives one recognition as an entrepreneur.
“It would be contactless and collateral-free,” he said. “Similar products we have already launched, not addressing, of course, the very basic, the informal segment.”
“So what we are doing is we are making a distinction between a GST registered. Enterprise and the non-GST registered enterprise. So most of the products that we currently have and are working on are for the GST registered enterprise. Then we will be working on the non-GST registered also,” Mandal said.
“But at the same time, when we are working on the GST-registered enterprises, we are demonstrating that credit is easily available without any collateral to GST-registered enterprise at a very competent rate,” he added.
“Because being a development financial institution, I'm able to provide finance at a lower rate of interest, unlike a microfinance institution or a fintech lender who will have a purely commercial mandate and not a developmental mandate,” he added.
