Tata Power, SIDBI to Offer Solar Financing for MSMEs
Tata Power Solar Systems Limited (TPSSL), a prominent player in India's solar industry and a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), has officially entered into a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI).
This collaboration aims to provide a seamless financing avenue tailored for Micro, Small, and Medium Enterprises (MSMEs).
TPREL, in turn, is a subsidiary of The Tata Power Company Limited (Tata Power), India's largest integrated power utility. Under this initiative, MSMEs across India looking to adopt Rooftop Solar PV Plants or related services through Tata Power or its authorised Channel Partners will receive financial support from SIDBI.
This strategic partnership between TPSSL and SIDBI intends to promote the adoption of solar energy among Micro, Small & Medium Enterprises by offering tailor-made and innovative financing solutions through SIDBI's 4E (End to End Energy Efficiency) Scheme. This scheme extends a host of appealing benefits to TPSSL's customers, including highly competitive interest rates and loan limits designed to cater to the specific needs of the MSME sector.
Additionally, TPSSL and SIDBI have unveiled "The Big Solar Fest" at the Global SME Finance Forum 2023. This festival season, MSMEs can benefit from zero processing fees, further incentivising the widespread adoption of solar energy.
The Big Solar Fest serves as a platform to raise awareness about the most competitive financing options available, all with the added bonus of zero per cent processing fees. This incentive aims to accelerate the MSME sector's journey towards sustainability and cleaner energy solutions.
Dr. Praveer Sinha, CEO & MD of Tata Power, emphasised the pivotal role of MSMEs in India's economy and encouraged them to take full advantage of "THE BIG SOLAR FEST" to contribute to a greener and more sustainable business ecosystem.
To make the scheme easily accessible, an online application process has been established to help MSME consumers become a part of the country's national solar mission.
Shri Sivasubramanian Ramann, Chairman & Managing Director of SIDBI, expressed confidence in the partnership's ability to provide MSMEs with superior products and services that facilitate their growth and decarbonisation journey.
The goal is to develop innovative and cost-effective financing options, particularly tailored to MSME customers, with the hope that this partnership and "The BIG SOLAR FEST" will accelerate the adoption of renewable energy in the MSME sector.
This MoU builds upon the success and positive feedback received from the collateral-free solar financing initiative introduced by TPSSL and SIDBI in 2021.
TPSSL plays a pivotal role in empowering various industries and businesses to embrace alternative energy sources, reduce carbon emissions, and contribute to India's clean energy aspirations. The company offers an extensive range of solar energy solutions, spanning from installations to operational maintenance, serving as a comprehensive end-to-end energy solution provider. TPSSL's solar EPC portfolio includes over 11.5 GWp of ground-mount utility-scale, more than 1.7 GW of rooftop and distributed ground-mounted systems, and over 100,000 solar water pumps.
SIDBI holds the key role of being the primary financial institution dedicated to promoting, financing, and nurturing the Micro, Small, and Medium Enterprises (MSME) sector in India, along with coordinating the functions of similar institutions engaged in similar activities.
Source: Tata Power Solar