Gadkari urges MSMEs to avail concessional finance and install rooftop solar

Union Minister Nitin Gadkari on Friday invited MSMEs to avail concessional debt finance to install rooftop solar for business efficiency.

The Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways said rooftop solar offers an excellent value proposition to MSMEs by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost.

Addressing a programme virtually, Gadkari said, "I believe there is a strong business case for MSMEs to install rooftop solar, and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops."

The minister observed that a large amount (Rs 8 on an average, and higher per unit) is being paid by the MSMEs for power consumption, which contributes up to one-fifth of the overall production costs.

"To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee programme to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses," he said.

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Addressing the event, Junaid Ahmad, Country Director, India, World Bank, said the World Bank is committed to the cause of MSMEs and an investment in this industry will aid India's aim to become 'Aatmanirbhar' or 'self-reliant'.

"By facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve a twin objective of greening the economy and uplifting MSMEs to become highly competitive by reducing its power costs," he added.

In India, where 60 million MSMEs make up about 30 percent of the country's growth, Nitin Gadkari had expressed that having a global vision for Indian products is the need of the hour.