Press Information Bureau

Government of India

Ministry of Finance

03-September-2012 18:31 IST

SIDBI Signs Agreement with Germany’s Development Bank KfW for Financial Assistance Worth Euro 54 Million to Support The Development and Diffusion of Innovative Technologies by MSMEs

Under the umbrella of Indo German bilateral development cooperation, the Small Industries Development Bank of India (SIDBI) and the German Government’s Development Bank KfW, today signed an agreement for financial assistance totaling EURO 54 million (approximately Rs. 375 crore) to support the development and diffusion of innovative technologies by micro, small and medium enterprises (MSMEs) operating in designated clean technology sectors. The agreements were signed in the Ministry of Finance in the presence of Shri Rajesh Khullar, Joint Secretary, Department of Economic Affairs, Ministry of Finance and Mr Bernd Dunnzlaff, Head of Development Cooperation, German Embaasy.

Under the Agreement, KfW will provide concessional loan and technical assistance to support financing of MSMEs for developing new energy efficiency, renewable energy, waste management, pollution control and other clean technologies.

Germany and India are longstanding partners. Since the 1950s, sectors like Energy, Financial Sector Development, Health, and Protection of the Environment and Natural Resources have received KfW support.

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DSM/RS/GN

Concessional financing for clean-technology MSME innovation under Indo-German cooperation enables targeted loans and technical support. KfW will provide concessional loan and technical assistance totalling EUR 54 million to SIDBI to finance MSMEs for developing and diffusing innovative clean technologies, targeting energy efficiency, renewable energy, waste management, pollution control and related sectors through concessional credit paired with technical support.