Tata Power on Tuesday announced its partnership with SIDBI to provide a finance scheme to the MSME players in the rooftop solar segment. Tata Power said easy financing has been one of the barriers for penetration of solar in the MSME sector.
"In order to address this challenge, Tata Power has partnered with Small Industries Development Bank of India (SIDBI) to provide easy financing scheme for MSME customers in rooftop solar segment," it said.
Tata Power and SIDBI have joined hands to design a solar financing solution to help MSME players with financial aid without any collateral at an interest of less than 10 per cent. The scheme will also be complimented with a sanction time of seven days and disbursal of money in four days, the statement said. The benefits of the scheme can be availed by both off-grid and on-grid solar connections, it said.
"We are pleased to partner with SIDBI for an innovative financing solution for our MSME customers. This will support and encourage MSME customers to adopt solar energy with affordable financing solution," Tata Power Managing Director Praveer Sinha said.
SIDBI Deputy Managing Director Manoj Mittal said "There was a need to innovate and pay attention to these (MSMEs) classes of customers to activate next leg of growth in rooftop solar market. Most MSMEs fail to attract developers due to smaller size or inadequate financial worthiness. The scheme will help the need of financing in the sector."