Gadkari said that the operational costs of MSMEs can be reduced by using Rooftop Solar Installations as the electricity costs comprise up to 20% of the operating expenses of MSMEs
Union Minister Nitin Gadkari said on Tuesday that the micro, small and medium enterprises (MSME) participation in adopting the solar rooftops is important for India's Renewable Energy targets of 175 GW by 2022.
"#MSME participation is critical for India achieving Renewable Energy #RE targets of 175 GW by 2022," Gadkari said in a tweet.
He urged the MSMes to install solar rooftops for improving their business efficiency. As he addressed a webinar on 'Accelerating Adoption of Solar Rooftop by MSME Sector’, Gadkari said that the operational costs of MSMEs can be reduced by using Rooftop Solar Installations as the electricity costs comprise up to 20% of the operating expenses of MSMEs.
"To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee programme to make financing accessible to unrated MSMEs," news agency PTI quoted him as saying.
He said that the rooftop solar installation remains significantly low among MSMEs at 800 MW. Speaking on this, Gadkari said that the government is partnering with the State Bank of India (SBI), World Bank India and the Ministry of New and Renewable Energy.
"Considering the rates of solar power from large utility power plants have come down to a record ₹1.99 per kWh, MSMEs must leverage this opportunity to bring down their energy expenses," he said.
"I urge MSMEs to apply for the scheme by visiting their nearest SBI branch and avail benefits of this scheme," Gadkari said.
At the webinar was also present the country director of World Bank of India, Junaid Kamal Ahmad said that the MSMEs form a "critical platform" for Atma Nirbhar India to leverage the global value chain in both the goods and service sectors, World Bank India tweeted.
He also said that by facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve both greening the economy and making MSMEs highly competitive.
"In #India, the programs of the @WorldBank Group support the MSMEs by securing their access to markets, finance, capacity, and green technology at scale," the tweet from World Bank India said.