A dedicated organisation is expected to be established to guide MSMEs in their transition to green energy.
The Centre is planning a Rs 15,000-crore green initiative targeting micro, small and medium enterprises (MSMEs), which will also include developing an e-marketplace for recyclable materials to link manufacturers with waste collectors, according to a report by The economic time.
The initiative, which is scheduled to be launched in early 2025, will involve the creation of material recovery facilities (MRFs) and management of the treatment of post-consumer products. In addition, a specialised organisation is planned to be set up to guide SMEs in their transition to green energy and create green policies tailored to these companies, according to the report.
The report quoted an official as saying: “Under the scheme, MSMEs will be provided with a subsidy to establish a MRF, address extended producer responsibilities in relation to safe disposal of end-of-life products and adopt other components of the scheme.”
Adoption of green technologies
The report quotes Anil Bhardwaj, Secretary General of the Federation of Micro, Small and Medium Enterprises of India, as saying that this incentive will boost competition in the global market. “By offering financial incentives, capacity building and policy support, the initiative enables SMEs 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 SMEs in the global market,” Bhardwaj said.
As part of the initiative, a new e-marketplace for recycling is planned. This platform will serve as a unified space for manufacturers and waste collectors, facilitating the seamless exchange of information between both parties.
Green Initiative for MSMEs: The Challenges
Currently, determining the optimal price for materials collected during waste management is a challenge due to lack of information on the best prices available. According to officials, the e-market portal will allow manufacturers to bid for collected materials, which will help waste collectors get better prices. The plan is expected to focus on energy efficiency and alternative fuels, the report said.
Decarbonisation, a key aspect of the initiative, will be carried out through a data-driven strategy. The Bureau of Energy Efficiency (BEE) could be involved in assessing SME emissions levels and setting benchmark measurements, according to the report.
The report quoted an official as saying: “The BEE is likely to do the benchmarking, and the energy efficiency body will also audit the performance of entities, assessing how much energy the MSMEs have saved.”
The plan is being developed with input from various stakeholders, including the Ministry of New and Renewable Energy, the Ministry of Environment, Forests and Climate Change, and the Ministry of Energy. In addition, private consultancies such as Boston Consulting Group and McKinsey & Company are providing their expertise, the report added.
First published: August 14, 2024 | 11:30 a.m. IS
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