VIJAYAWADA: The request of the AP government to the Centre to introduce an interest subvention scheme for promoting energy efficiency initiatives in industries, particularly MSME, is being examined by the Union Ministry of Power, according to the state energy department.
The union ministry’s Bureau of Energy Efficiency (BEE) said AP was the first state to have made such a proposal and that it was being perused by the ministry in consultation with Power Finance Corporation (PFC).“BEE director Vineeta Kanwal said AP energy secretary Srikant Nagulapalli was the first official in the country to have raised the issue and requested the Union ministry and BEE to introduce a interest subvention scheme for MSMEs/industries, which the ministry of power is examining duly consulting Power Finance Corporation(PFC),” a statement from the department on Sunday said.
It may be recalled that the state sought at least 5 per cent interest subvention in July, noting that the present unattractive interest rates were deterring industries from investing in energy efficiency (EE) projects. The secretary noted that energy efficiency financing would play a pivotal role in achieving both national and state energy savings targets.