With the growth of the Indian economy, the country’s demand for energy has been rising continuously over the last years. In addition to expanding its production capacities, India has chosen to enhance energy efficiency. The industrial sector, with 80 per cent consisting of small and medium enterprises (SMEs), shows particular high potentials for energy savings.
Within the framework of the Indo-German financial cooperation, the German development bank KfW provided a credit line of 50 million euros to the Small Industries Development Bank of India (SIDBI) in 2009 to disburse as investment loans for EE improvements in SMEs. Now the German and Indian governments have decided to provide an additional credit line to further enhance energy efficiency in the industrial sector in India.
adelphi, who lead the consortium of consultants for implementing the accompanying technical assistance (TA) of the first line of credit, was assigned by KfW to conduct preparatory studies for the second KfW Energy Efficiency Line of Credit with SIDBI. The aim of the preparatory assignment is to review the experiences of the first TA phase and optimize the concept for the successive credit line.
In this context, adelphi conducts brief studies including analyses of the current economic situation, the SME sector and SIDBI, a definition of target indicators and objectives of the credit line. Further adelphi develops a concept defining eligibility criteria and assessment, the monitoring process and the implementation of the credit line. Benefiting from the experiences and lessons learnt from the previous TA period adelphi makes recommendation for the TA accompanying the successive credit line. Finally, adelphi analyses and evaluates SIDBI’s activities in utilising the amount for the first energy efficiency credit line.