ASIAN CLEANTECH MSME FINANCING NETWORK

India Project Work

1st Technical Report

Submitted to

Association of Development Financing Institutions in Asia and the

Pacific (ADFIAP) 2/F Skyland Plaza Building,

Sen. Gil Puyet Avenue,

Makati City, Philippines - 1200

Submitted by

Confederation of Indian Industry CII – Sohrabji Godrej Green Business Centre

Survey No. 64, Kothaguda Post, Near HITEC City

Hyderabad 500064

18/ October/ 2016

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TABLE OF CONTENTS

1. Introduction 2

2. ACMFN Project Launch in India: 23 February, 2016 3

3. Summary of activities carried out from March 2016 to June 2016 3

3.1 ACMFN presented at the BLISS forum 3

3.2 Train the Trainers (TOT) Workshop 3

3.2.1 TOT at New Delhi: 23 – 24 June, 2016 4

3.2.2 TOT at Hyderabad: 27 – 28 June, 2016 4

3.3 ACMFN at Training Program on Energy Management: 28 June, 2016 5

3.4 Other preparatory and administrative activities 5

4.0 Further activities and proposed timelines 5

5.0 Annexures 7

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1.0 Introduction

Confederation of Indian Industry (CII) has always been at forefront in driving the concept of energy

efficiency and environment sustainability in the Indian Industry. Micro Small and Medium

Enterprises (MSME) being the fundamental block of the industrial sector, has been the focus to

develop various energy and environment improvement interventions. The interventions needed are

not just in policy at the central level but more of introduction to the clean technologies at the cluster

or unit level. The clean technologies represent the technologies and the process that have a positive

bearing on the environment. However, the major challenge lies not in identification but in

implementation of these technologies as these interventions require huge investments. Thus,

financial institutions have a major role to play in the whole process.

To understand better, we can define the system having three elements i.e. MSMEs, Technology

Supplier and Banks. It is very vital that all three elements are effectively networked. More

importantly, for the system to function, all the elements should be driven by a common objective.

Presently, the interactions between the MSMEs and the financial institutions with respect to clean

technology financing is low on the scale. The challenge for the system lies in bridging this

communication that exists between these elements.

With our objective to address this challenge, CII is part of the European Union’s Switch Asia initiative

called Asian Cleantech MSME Financing Network (ACMFN). It is a 4 year project being executed

concurrently in India, China and Indonesia. Under this project, the lead partner: ADFIAP with

technical partner: adelphi and National Focal Points viz. Confederation of Indian Industry in India,

PUPUK in Indonesia and CEESTA in China, are going to support the uptake of cleantech innovation

and to improve access to finance for cleantech MSMEs across Asia.

The major objective of the initiative is to build and leverage a cleantech financing ecosystem to

spark improved access to finance for Asian cleantech MSMEs in order to enhance sustainable

consumption and production patterns in Asia. CII being the NFP for ACMFN in India, will execute all

the deliverable for India. The major deliverables include to identify and scale up successful

Sustainable Consumption and Production practices in Asia through acceleration of MSME cleantech

innovation capacities. The action will also promote investment readiness and financial literacy of

MSMEs. Along with the MSMEs, the financial institutions are to be capacitated in cleantech financing

through technical assistance, peer learning opportunities, collaboration for co-financing, network

creation and matchmaking with promising cleantech MSMEs.

As a part of the project the following impacts are envisages for the Indian MSME sector:

Capacity building to be received by 400 MSMEs and 200 Financial Institutions – introducing cleantech toolbox

Advised and developed investment ready proposals for MSMEs

20 Financial Institutions with updated cleantech financing portfolio

Developed innovative guidebook consisting of cleantech financial products

12 National matchmaking fora between the MSMEs and global financiers

Leveraging more than 5 Million EUR for cleantech funding

ACMFN to act as an umbrella network and is established as cleantech agenda setter in the region

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From L to R : Mr S Raghupathy, Deputy Director General, CII; Mr Kavi Arora, Co-Chairam, CII Regional Council on MSME; Mr Octavio B Peralta, Secretary General,, ADFIAP; Ms Sarojini Kaul, Project Manage, Delegation of EU to India; Mr Ramesh Dharmaji, CGM, SIDBI; Mr Rajive Chawla, Chairman, I AM SME OF INDIA

2.0 ACMFN Project Launch in India: 23

February, 2016

ADFIAP together with its project partners,

the Confederation of Indian Industry (CII)

and Germany’s Adelphi launched the

project on February 23, 2016 in New Delhi,

India.

More than 50 participants and stakeholders

joined the successful project launch held at

the Lalit Hotel in the Indian capital. Eminent

speakers from the EU Delegation to India,

CII Green Business Centre, CII’s regional

Council on MSMEs, the Integrated

Association of Micro, Small & Medium

Enterprises of India (I am SME of India) and the Small Industries Development Bank of India (SIDBI)

shared their insights on MSMEs and clean technologies. Details pertaining to the programme like

agenda, list of participants, et cetera are annexed.

3.0 Summary of activities carried out from March 2016 to June 2016

As the program was officially launched in the month of February 2016, CII being the NFP for the

project activities in India drafted the action plan along with timelines for all the deliverables for year

1. The detailed sheet prepared is attached in the annexure.

3.1 ACMFN presented at the BLISS forum

Building Learning in Sustainability Science (BLISS) was organised

by TERI University in New Delhi in partnership with the SWITCH-

Asia Regional Policy Support Component. The 2016 edition took

place on April 18-22 and included 14 senior government officials

from the SAARC countries, besides other relevant stakeholders

such as policy makers from the ministry levels of SAARC countries,

SMEs and entrepreneurs, academia, financial institutions and

industry associations.

During the event, the Confederation of Indian Industry (CII) introduced ACMFN and presented the

newly launched SWITCH-Asia initiative.

3.2 Train the Trainers (TOT) Workshop

As a first set of activities, CII with the support of Adelphi and ADFIAP, initiated the identification of

potential trainers for the project. In the process, CII gathered a strong list of people working very

closely in the field of sustainability in MSMEs. The information gathering and promotion of the

ACMFN project was done through preparing a simple google form for registration. The link for the

google form for registration is http://bit.ly/2cG8Ao6. The identified people along with the people

who registered were invited for the 2 day workshop at New Delhi and Hyderabad.

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3.2.1 TOT at New Delhi: 23 – 24 June, 2016

The first workshop was conducted in the capital city at IHC, Lodhi Road from 23 – 24 June, 2016. The

workshop was attended by more than 15 participants. The participants were majorly consultants

along with bankers, technology suppliers, MSME and representatives from think tanks.

During workshop, the ACMFN project was introduced to the participants. The event being a 2 day

workshop, several interactive tools regarding sustainable consumption and production were

introduced. The entire audience was divided into 2 groups to undergo all the activities planned. Day

one focussed on all the tools pertaining to technical side of clean technology implementation project

while on the day 2 all the tools related to finances were discussed. During the later stages, all the

participants were made to work on these tools by providing an opportunity to work on real life case

studies.

Some of the tools introduced during the workshop is as under:

1. Mapping of process energy consumption and identifying the intervention for clean technologies

2. Identifying the enablers and barriers of clean tech financing in India

3. Preparing the development matrix to accelerate clean tech financing in CP and CT companies

4. Role matrix – Participants have to choose their preferred role in the ACMFN project

5. Strategy formation to act on the challenges faced by each stakeholder (customer, Govt.,

Employees, etcetera) in implementing cleantech in MSMEs

At the closing of the event, all the participants were handed over the certificate of participation,

acknowledging their inputs and suggestions provided during the workshop. More details like

photographs, agenda, list of participants, etc are attached in the annexure.

3.2.2 TOT at Hyderabad: 27 – 28 June, 2016

The second workshop was conducted at HICC, Novotel Hotel, Hyderabad, from 27 – 28 June, 2016.

The workshop was attended by more than 15 participants. The participants were majorly

consultants, MSME owners along with bankers and technology suppliers. Majority of the participants

were very senior members of their respective organisations.

During workshop, the ACMFN project was introduced to the participants. The event also being a 2

day workshop, several interactive tools regarding sustainable consumption and production were

introduced. The entire audience was divided into 4 groups to undergo all the activities planned. Day

one focussed on all the tools pertaining to technical side of clean technology implementation project

while on the day 2 all the tools related to finances were discussed. During the later stages, all the

participants were made to work on these tools by providing an opportunity to work on real life case

studies.

At the closing of the event, all the participants were handed over the certificate of participation,

acknowledging their inputs and suggestions provided during the workshop. More details like

photographs, agenda, list of participants, etc are attached in the annexure.

Post the workshop, CII project team and Mr Mirko Zuerker, Adelphi had a review meeting on the two

workshops at Delhi and Hyderabad. The areas for further improvement were discussed. Also, the

way forward for the project activities in India was discussed in the meeting.

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3.3 ACMFN at Training Program on Energy Management: 28 June, 2016

The training program on Energy Management, a half-day event with participation from all the major

suppliers of various energy efficient technologies, was done at Ahmedabad, Gujarat. CII Ahmedabad

office hosted the event. During the same workshop, ACMFN project was introduced to the

participants and the role of technology suppliers as a stakeholder in the entire project was discussed

in detail.

The benefits of being a part of the project as a supplier were explored and shared. Several

engagement models were introduced to the suppliers. Feedback from these suppliers was also taken

to further strengthen the approach.

3.4 Other preparatory and administrative activities

All the activities conducted under the project needed a lot of background work with exhaustive

administrative requirements. The major administrative activities planned and carried out is as under:

Preparation of ACMFN backdrop/standee for the project launch event

Preparation of online registration sheet to garner more participants for TOT workshops at

Hyderabad and New Delhi

Preparation of first newsletter highlighting the objectives and potential impacts of being a

member of the project. The newsletter was made to sensitize the MSMEs on clean

technologies and implementation. (enclosed in Annexure)

Meetings and Discussions

Mr K S Venkatagiri, Executive Director, CII – Godrej GBC met the senior office bearer of

Indian Bank’s Association (IBA) to discuss about synergizing the work under the ACMFN

project

Detailed discussion with bigger organizations like TATA Motors and Godrej & Boyce Mfg.

Ltd., on working with their vendor network and sensitize the supply chain on the benefits of

adopting clean technologies were conducted

In plant meetings with Managing Directors of six potential MSMEs. The detailed discussion

was facilitated during handholding under Green Co SME Rating visits. All these SMEs were

sensitized on ACMFN and its benefits

Regarding the promotion of ACMFN, several meetings were conducted at various

associations like I AM SME OF INDIA (Faridabad), Jeedimetla Industries Association, Vapi

Industrial Association and others.

4.0 Further activities and proposed timelines

With several modalities in place to promote ACMFN project in the country, the focus is more on the

model on working with larger original equipment manufacturers (OEMs) in adopting their supply

chain to sensitize them on clean technologies. Working with OEMs has a greater impact in all the

activities to be conducted under the project. Under the model, the reach out to larger numbers of

MSME is possible which is very vital for a sensitizing workshop. It also leads to effective

implementation of all the follow up activities at the vendors.

CII through its other networks identified Godrej & Boyce Mfg. Ltd. and TATA Motors as the initial

OEM’s under the model. The action plan was drafted with the support of both the OEMs for the

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respective workshops. 2 workshops with the OEMs have already been conducted till date, others are

in planning phase. The details of next set of activities planned is as under:

Activities (Aug – Dec, 2016) Status of

completion

Date of completion/

Expected date of

completion

Workshop at external conference on Energy Efficiency

Summit 2016, Hyderabad Completed 24th August, 2016

Discussion with Small Industrial Development Bank of India

(SIDBI) on the role of FI in the entire project Completed 24th August, 2016

Sensitising Workshop No:1 at Jeedimetla Industries

Association, Hyderabad Completed 31st August, 2016

Sensitising Workshop No:2 for Godrej & Boyce Supply

chain network, Chandigarh Completed 07th September, 2016

Sensitising Workshop No:3 for Godrej & Boyce and TATA Motors Supply chain network, Pune

Completed 20th September, 2016

Meeting and attending the Bankers conference on

promoting ACMFN and integrating ESCO model in the

project

In Progress 23rd September, 2016

Sensitising Workshop No:4 in collaboration with CII Regional office, Nagpur

In Progress 29th September, 2016

Sensitising Workshop No:5 with Vapi Industries

Association, Vapi In Progress 30th September, 2016

Preparation of second newsletter under the project

highlighting the progress In Progress 15th October, 2016

Visiting identified MSMEs for DPR preparation for clean

technology financing at various locations In Progress 15th December, 2016

As mentioned above, CII values the approach of OEMs and would like to explore further in the

direction to promote ACMFN in the SMEs. Some of the other activities that are in planning phase are

as under:

Sensitizing workshop at New Delhi for members of I AM SME OF INDIA association

Sensitizing workshop at Kolkata for the MSMEs in the eastern part of India. This is in line

with our objective of pan India presence

Working further with identified SMEs from the visits conducted after sensitizing workshops

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Meeting with banks/FIs at conferences to discuss and promote ACMFN

ANNEXURES

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Annexure 1

List of participants – TOT at Delhi

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List of participants – TOT at Hyderabad

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Photographs

At Delhi

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At Hyderabad

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Newsletter - Issue 1

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