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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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