Tata Power on Tuesday announced a partnership with Small Industries Bank of India (SIDBI) to provide affordable financing scheme for MSME customers in the rooftop solar segment.
The scheme will empower MSMEs to adopt sustainable energy for their businesses and promote greener tomorrow, said India's largest integrated power company.
Easy and affordable financing has been one of the barriers for penetration of solar energy in the MSME sector.
Tata Power and SIDBI will provide a financing solution without any collateral at an interest rate of less than 10 per cent. This will be complimented with a sanction within seven days and disbursement in four days.
The scheme is for MSME customers of Tata Power for both off-grid and on-grid connections.
Green energy has gained momentum in sectors like MSME, said Praveer Sinha, CEO and Managing Director of Tata Power.
"We are pleased to partner with SIDBI for an innovative financing solution for our MSME customers," he said in a statement.
Manoj Mittal, Deputy Managing Director of SIDBI, said most MSMEs fail to attract developers due to smaller size or inadequate financial worthiness.
"There is need to innovate and pay attention to these classes of consumers to activate the next leg of growth in rooftop solar market," he said.
Tata Power is India's largest integrated power company and, together with its subsidiaries and jointly controlled entities, has an installed or managed capacity of 12,772 megawatts.
( With inputs from ANI )
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