 "The Economic Survey said MSMEs face extensive compliance requirements and significant bottlenecks with access to affordable and timely funding being some of the core concerns")
A specialised organisation is expected to be established to guide MSMEs in their shift to green energy
The Centre is planning a Rs 15,000 crore green initiative aimed at micro, small, and medium enterprises (MSMEs), which will also include the development of an e-marketplace for recyclables to link manufacturers with waste collectors, according to a report by The Economic Times.
Scheduled to launch by early 2025, the initiative will involve establishing material recovery facilities (MRFs) and managing post-consumption product treatment. Additionally, a specialised organisation is expected to be established to guide MSMEs in their shift to green energy and to create tailored green policies for these enterprises, the report said.
The report quoted an official as saying, “Under the scheme, MSMEs will receive a subsidy for setting up MRF, navigating extended producer responsibilities concerning safely disposing end-of-life products, and adopting other components of the scheme.”
Adoption of green technologies
The report quoted Anil Bhardwaj, secretary general at Federation of Indian Micro, Small & Medium Enterprises, as saying that this incentive will boost competition in the global market. “By providing financial incentives, capacity building, and policy support, the initiative empowers MSMEs to reduce their carbon footprint, adopt green technologies, and create new business opportunities. This not only benefits the environment but also enhances the competitiveness of MSMEs in the global market,” Bhardwaj said.
As part of the initiative, a new e-marketplace for recycling is expected to be established. This platform will serve as a unified space for manufacturers and waste collectors, facilitating seamless information exchange between the two parties.
Green initiative for MSMEs: The challenges
Currently, determining the optimal price for materials collected during waste management is challenging due to a lack of information about the best available prices. According to officials, the e-market portal will enable manufacturers to place bids on the collected materials, which will help waste collectors secure better prices. The scheme is expected to focus on energy efficiency and alternative fuels, the report said.
Decarbonisation, a key aspect of the initiative, will be pursued through a data-driven strategy. The Bureau of Energy Efficiency (BEE) might be involved in assessing the emission levels of MSMEs and establishing baseline measurements, the report said.
The report quoted an official as saying, “The baselining is likely to be done by the BEE, and the energy efficiency body will also audit the performance of entities, assessing how much energy MSMEs have saved.”
The scheme is being developed with contributions from various stakeholders, including the Ministry of New and Renewable Energy, the Ministry of Environment, Forest, and Climate Change, and the Ministry of Power. Additionally, private consultancies like the Boston Consulting Group and McKinsey & Company are providing input, the report further said.
First Published: Aug 14 2024 | 11:30 AM IS