SIDBI project gets $215.6M funding from Green Climate Fund

Small Industries Development Bank of India (SIDBI) on Monday said the Green Climate Fund (GCF) approved a $215.6 million loan facility for one of its projects.

The funding is for implementing Financing Mitigation and Adaptation Projects (FMAP) in Indian small businesses, as per an official statement.

It will support Indian micro, small and medium enterprises (MSMEs) in adopting low-emission and climate-resilient technologies, thereby contributing to the country's net-zero targets.

Small businesses in India will be provided with concessional loans to adopt various mitigation and adaptation technologies under the facility, it said.

The funding consists of a $200 million facility for concessional loans, while the remaining $15.6 million in grant support from GCF, which will be utilised to build the capacity of various stakeholders, including MSMEs and PFIs, to understand the various low-emission and climate-resilient technologies.

The FMAP programme is expected to result in GHG emission reductions to the tune of 35.3 million tonnes, and the adaptation activities would not only lead to substantial water savings but also build resilience of vulnerable communities benefitting more than 10.8 million beneficiaries, the statement said.

SIDBI said it has already approved its maiden project under the facility by allocating $24.5 million to Avaana Sustainability Fund to kindle the startup ecosystem.