Tata Power Solar Systems Limited (TPSSL), a leading integrated solar company in India and a subsidiary of Tata Power Renewable Energy Limited (TPREL), has signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI) to provide streamlined financing options for Micro, Small & Medium Enterprises (MSMEs) interested in adopting rooftop solar photovoltaic (PV) plants and related services.
TPREL, a subsidiary of India’s largest integrated power utility, Tata Power, aims to empower MSMEs across India to harness the benefits of solar energy through this collaborative initiative with SIDBI.
At the Global SME Finance Forum 2023 in Mumbai, the MoU exchange ceremony was graced by Hon’ble Union Minister of State for Finance, Dr. Bhagwat Karad. Dr. Praveer Sinha, CEO & MD of Tata Power, and Shri Sivasubramanian Ramann, Chairman & Managing Director of SIDBI, were the signatories of the MoU.
Under this strategic partnership, TPSSL and SIDBI will work together to promote solar energy adoption among MSMEs by offering tailor-made and innovative financing solutions through SIDBI’s 4E (End to End Energy Efficiency) Scheme. This scheme will provide TPSSL’s customers with competitive interest rates and loan limits customized to meet the specific requirements of the MSME sector.
In addition to the financing options, TPSSL and SIDBI have jointly launched “The Big Solar Fest” at the Global SME Finance Forum 2023. As part of this initiative, they will waive processing fees for MSMEs during the upcoming festival season. The aim is to raise awareness about the attractive financing opportunities available, complete with zero percent processing fees. This extra incentive is poised to accelerate the green transformation of the MSME sector, reaffirming its dedication to sustainable growth and clean energy solutions.
With this collaboration, TPSSL and SIDBI are set to play a pivotal role in facilitating the widespread adoption of solar energy among India’s thriving MSME community, contributing to the nation’s sustainable energy goals and economic growth.
Dr. Praveer Sinha, CEO & MD of Tata Power, said, “MSMEs are the backbone of India’s economy. They operate across industrial segments and are major consumers of electricity. Our strategic collaboration with SIDBI will facilitate the ‘ease of opting’ renewable energy in the MSME sector and power its quest to become more efficient and globally competitive. I urge them to make the most of ‘THE BIG SOLAR FEST’ and play a pivotal role in building a greener and sustainable business ecosystem in the country.”
An online application process has also been set up to help MSME consumers avail this scheme and contribute to the advancements of the country’s national solar mission.
Shri Sivasubramanian Ramann, Chairman & Managing Director, SIDBI, said, “SIDBI has prioritised digitisation of credit access and green/climate financing. SIDBI leverages partnerships to reach the last mile. We are confident that our partnership with Tata Power Solar will result in MSMEs getting better quality products & services, which will help in MSMEs growth and decarbonisation journey. We envision working towards developing innovative and cost-effective financing options, especially for MSME customers. We are optimistic that this partnership and within that ‘The BIG SOLAR FEST’ will go a long way in accelerating the adoption of renewable energy, especially among the MSME sector.”
The recent Memorandum of Understanding (MoU) inked between Tata Power Solar Systems Limited (TPSSL) and the Small Industries Development Bank of India (SIDBI) marks a significant milestone in the continuation of their highly acclaimed collateral-free solar financing program, which was originally introduced in 2021.
TPSSL, a formidable force in India’s solar energy sector, assumes a pivotal role in facilitating diverse industries and businesses in their transition towards renewable energy sources. This not only aids in reducing carbon emissions but also aligns closely with India’s ambitious clean energy objectives.
The company boasts an extensive and comprehensive portfolio of solar energy solutions, encompassing everything from initial installations to the ongoing operational maintenance of solar systems. TPSSL stands as a one-stop destination for consumers, expertly catering to their holistic end-to-end energy requirements. The company’s solar EPC (Engineering, Procurement, and Construction) portfolio encompasses a staggering 11.5 GWp in ground-mount utility-scale projects, over 1.7 GW in rooftop installations and distributed ground-mounted systems, along with an impressive deployment of over 1,00,000 solar water pumps.
In parallel, SIDBI plays a critical role as the principal financial institution dedicated to the promotion, financing, and development of India’s vital Micro, Small, and Medium Enterprises (MSME) sector. The institution also assumes the crucial responsibility of coordinating the activities of institutions engaged in similar endeavors, further underscoring its significance in fostering MSME growth and sustainability.
The renewed commitment between TPSSL and SIDBI reflects their unwavering dedication to strengthening the MSME sector’s access to sustainable and cost-effective solar energy solutions. This collaboration not only fuels economic growth but also advances India’s clean energy aspirations to new heights.