4E (End to End Energy Efficiency)

4E (End to End Energy Efficiency) is a sustainable finance scheme launched by the SIDBI (Small Industries Development Bank of India) on 5 June 2014. SIDBI launched this intervention on the special day of “World Environment Day”. This scheme aims to provide technical backstopping and help MSME (Ministry of Micro, Small & Medium Enterprises) clients to reduce their labour and expenditures. It mainly provides support to the MSMEs in fulfilling their financial needs. It provides loans to MSMEs to implement energy efficiency measures, the latest technologies, etc. The following article will demonstrate all about this sustainable finance scheme in detail. 

SIDBI 4e Scheme 

SIDBI 4e scheme was launched to provide financial support to MSMEs. It helps MSMEs implement new technology and other energy efficiency measures. It mainly focuses on implementing those technologies in which machinery consumes less energy and provides big output. The MSME, which fulfils the eligibility criteria of this Scheme, will also get the financial facilitation and technical consultancy at very reliable rates of interest. 

According to the rules and regulations mentioned in the Scheme, a Detailed Energy Audit of the MSME project is introspected by qualified Energy Auditors and consultants. These Energy Auditors and consultants work in the SME Services Technology Limited (ISTSL), a combined venture of SIDBI. After the project’s approval, it was delivered to the other MSME Units. The MSME can provide financial help from ten lakhs to 1.5 Crores under this sustainable finance scheme. All the important faculties like verification support, implementation Support and monitoring support will be provided to the qualified MSME at a very low cost. 

Purpose of the SIDBI 4E Scheme

The main purpose of this sustainable finance scheme is to provide financial support to MSMEs. Let’s understand its purpose in detail. 

• Implementation of Energy Efficiency strategies. 
• They are fulfilling the finances needed for capital expenditure, which contains types of machinery, administration works and so forth. 
• Provide finances for the land and types of equipment. 
• The expenditures of any mentioned energy efficiency measures should not be 50% more than that of the total project cost. 

Benefits of the SIDBI 4E Scheme

There are lots of benefits of this sustainable finance scheme. Here are some benefits of 4e (end to end energy efficiency) listed:

• It helps develop the base level of MSME by providing technical and financial consultations. It helps MSME in implementing good quality services in their firm.
• It helps the MSME in taking the loans. The loans of this Scheme are given at a concessional interest rate and simple terms or conditions. 
• The charges of Implementation support, Normal Detailed Energy Audit and M&V will remain up to ₹1.5 Lakhs to ₹ 2.5 Lakhs. 
• This sustainable finance scheme also provides financial consultancy. It timely reviews the quality of services provided by the MSME and suggests various strategies for improving performance. 
• The Scheme also provides consultation support related to effective resource management. It provides a different idea for reducing the high castle energy consumption like thermal energy and solar energy with solar panels. 

Eligibility criteria for the 4e (end to end energy efficiency) Scheme 

The eligibility criteria for this sustainable finance scheme are as follows:

• Only Micro, Small or Medium Enterprises (MSME) can become part of this Scheme. The MSME must belong to the Service and manufacturing sector. 
• The MSME must be in the running position for three years. Along with this, the MSME also must have made a profit in the last two running years. 
• The MSME must submit two documents: the Detailed Project Report (DPR) and Detailed Energy Audit (DEA). These documents are mandatory for getting qualified for this Scheme. 

SIDBI 4E Scheme procedure

In the beginning, the MSME had to complete the process of a detailed energy audit with the help of consultants and a specialised agency. After that, the consultants and technical agencies developed the  DPR (Detailed Project Report)  of the MSME. Then this DPR is checked and evaluated by the EEC. While filling out the application form for SIDBI 4E Scheme, MSME has to attach the SIDBI BOs, and EEC vetted DPR. If the MSME gets qualified for the Scheme, it will get all the faculties and help mentioned in this Scheme. 

Conclusion 

The SIDBI 4E Scheme is the best sustainable finance scheme. It mainly focuses on the sustainability of MSME. It provides financial support and guidance to the MSME. But, it only supports the running MSME. If the MSME fulfils the eligibility criteria of this Scheme, then it will get all the basic facilities listed under this Scheme. The Scheme also focuses on the implementation of new technology and updated software. Hence, it also provides technical guidance to qualified MSMEs. Qualified MSMEs can also take the loan at concessional interest rates.