End to end energy efficiency (4E Financing scheme)

Ministry of Finance, SIDBI

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The scheme aims to invent EnergyEfficiency measures on an end to end basis. For meeting part cost of capital expenditure including for purchase of equipment/ machinery, installation, civil works, commissioning, etc. for implementing the Energy Efficiency measures as recommended in the DPR, any other related expenditure required by the unit, provided it is not more than 50%.

Eligibility Criteria

·     MSME units in the manufacturing or services sector.

·     Applicant unit should be in operation for atleast three years and should have earned cash profit in the last two years of operation and should not be in default to any bank/FI.

·     Proposal should be in the range of C1-C8.

·     The unit should have undergone the process ofDetailed Energy Audit (DEA) through a technical agency / consultant having BEE certified Energy Auditors. Further, the Detailed Project Report (DPR) prepared by the technical agency / consultant should have been vetted by EEC, SIDBI.

·     The unit should not have availed PerformanceLinked Grant under the WB-GEF Project for the proposed EE Project.

·     The unit should be in compliance with theEnvironment & Social Management Framework (refer Appendix I, II & III for details).


·     Up to 90% of the Project cost with minimum loan amount of 10 lakh and maximum loan amount not to exceed 150 lakh per eligible borrower under this scheme. 

·     The repayment period including initial moratorium period of up to 6 months, shall not be more than 36 months for loans up to 50 lakh and 60 months for loans beyond 50 lakh