MSMEs to get US$ 1.79 billion (Rs. 15,000 crore) subsidy to boost recycling, efficiency

The Centre is set to launch a US$ 1.79 billion (Rs. 15,000 crore) green initiative for micro, small, and medium enterprises (MSMEs) by early 2025 to foster sustainability and green technology adoption. The initiative will include the development of an e-marketplace for recyclables, linking manufacturers with waste collectors, and establishing material recovery facilities (MRFs) for post-consumption product treatment. A specialized organization will guide MSMEs in transitioning to green energy and developing tailored green policies. Under this scheme, MSMEs will receive subsidies for setting up MRFs and managing extended producer responsibilities for end-of-life product disposal.

Secretary General of the Federation of Indian Micro, Small & Medium Enterprises, Mr. Anil Bhardwaj, noted that the initiative will enhance global competitiveness by providing financial incentives, capacity building, and policy support, enabling MSMEs to reduce their carbon footprint and create new business opportunities. The e-marketplace will facilitate better pricing for collected materials by allowing manufacturers to place bids. The scheme will focus on energy efficiency and alternative fuels, with a data-driven approach to decarbonization potentially involving the Bureau of Energy Efficiency (BEE) for emission assessments and performance audits. Various stakeholders contribute to the scheme's development, including the Ministry of New and Renewable Energy, Environment, Forest, and Climate Change, the Ministry of Power, and consultancies like Boston Consulting Group and McKinsey & Company.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.