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News: The Ministry of Micro, Small and Medium Enterprises (MSME) is strengthening support for sustainable manufacturing through its Green Investment and Finance and Technology (GIFT) Scheme.
About Green Investment and Finance and Technology (GIFT) Scheme
- It is a sub scheme under the RAMP Programme.
- Launched by: It has been launched by Ministry of Micro, Small and Medium Enterprises.
- Implementing Agency: Its implementing agency is Small Industries Development Bank of India (SIDBI).
- Aim: It aimed at helping MSMEs transition to greener energy and cleaner production processes.
- Objective: To provide support to the MSMEs in accessing institutional finance at a concessional rate for adopting clean / green technologies and help them to transform into green and sustainable business operations.
- Duration: The scheme is for the duration of 3 years (FY 2023-24 to 2025-26).
- Eligibility:
- MSME registered under the Udyam Registration portal are eligible.
- Member Lending Institution (MLIs): Scheduled commercial bank/ All India Financial
- Institution including SIDBI, Small Finance Banks/ Micro Finance Institutions/
- Non-Banking Finance Companies can become a Member Lending Institution (MLI).
- Components of the scheme: The Scheme has components of Interest Subvention and Risk sharing.
- Interest Subvention: Interest subvention of 2% per annum, for period of 5 years, up to a term loan limit of INR 2 crores for Micro and Small enterprises.
- Risk sharing: Loans to MSEs up to INR 2 crore would be covered under this component. Rs 125 crores will be used to provide credit guarantee to the participating Member Lending Institutions (MLIs) (75% of guaranteed coverage for eligible loans).
