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Time of India
5 days ago
- Business
- Time of India
Sustainable development: The rise of green MSMEs
Micro-, small- and medium-sized enterprises (MSMEs) in the country are increasingly embracing green practices, as sustainability is fast emerging as a crucial factor for growth, moving beyond just compliance. While still in the early stages, the shift reflects a broader understanding that environmental responsibility and economic success are interconnected. MSMEs contribute significantly to India's carbon footprint, accounting for 10-15 per cent of industrial sector emissions, which are 3-4 per cent of overall carbon dioxide emissions in India, according to a SIDBI report. The report emphasised that reducing emissions from MSMEs is essential to achieving India's environmental sustainability target and net-zero goal by 2070. Even MSMEs are acknowledging the importance of minimising their carbon footprints, say experts. Gaurav Kedia, Chairman, Indian Biogas Association (IBA), believes that the government support and cost savings are driving India's MSME sector's transition to green energy. 'By 2024, 21 per cent of Indian MSMEs were powered by solar energy, and 31 per cent had begun utilising energy-efficient machinery. Rooftop solar panels reached 11.87 GW, reducing power bills by 30 per cent on average and paying for themselves in three to five years. This change could lower CO₂ by 110 million tonnes each year. Textile and chemical industries are leading this shift, while Gujarat, Maharashtra, and Kerala are making big strides,' says Kedia. Government initiatives like PM Surya Ghar and MSME Sustainable (ZED) Certification are driving progress. If this momentum continues, MSMEs could play a significant role in achieving India's 2030 renewable energy goal, potentially contributing up to 50 per cent to the 500 GW target, adds Kedia. Similarly, Maninder Singh Nayyar, Founder and CEO of the CEF Group, says that the interest from the sector is promising, especially as more MSMEs realise that sustainable transformation can enhance their credibility, open new markets, and future-proof their operations. Unlocking new opportunities India can emerge as a green manufacturing hub by integrating large corporations and MSMEs in a sustainable value chain and capitalising on the growing demand for eco-friendly products and manufacturing practices, believe experts and stakeholders. 'Regulators and policymakers can support this transition by establishing digital public infrastructure for ESG reporting and certification, providing tax benefits and accessible financing for MSMEs and enabling learning at scale for green skills programmes,' says Namrata Rana, National Head of ESG, KPMG in India. According to Miniya Chatterji, CEO, Sustain Labs Paris, the Indian MSMEs are benefiting from the shift to sustainable practices, especially those in global supply chains and sectors with growing demand for eco-friendly products and services. 'This transition is creating new opportunities and value for Indian MSMEs,' says Chatterji. 'For instance, textile MSMEs in Tiruppur that adopted Zero Liquid Discharge systems have seen renewed export opportunities in Europe, where environmental compliance is now a baseline requirement. We are seeing similar shifts in food processing, ceramics, and auto components, where sustainability-readiness directly influences competitiveness,' adds Chatterji. Is green transition expensive for MSMEs? Experts say that MSMEs face challenges in transitioning to green solutions due to high upfront costs and tight margins. However, there are long-term benefits, such as lower utility bills, reduced material waste, tax incentives, and carbon credits. 'The key lies in enabling access: affordable green technologies, subsidies, and awareness programmes. That's where partnerships with start-ups like ours can help,' says Nayyar. According to Kanishk Maheshwari, Co-founder and Managing Director of Primus Partners, micro and small enterprises face challenges in adopting green practices due to limited working capital, minimal access to formal credit, lower technological sophistication, and high upfront costs for energy-efficient equipment and sustainable processes. 'That said, the long-term benefits of going green, such as reduced operational costs (particularly energy expenses), enhanced product marketability, and compliance with future regulatory requirements, can outweigh the initial investment. For many MSMEs, the green transition is not just an environmental imperative but also a pathway to improved resilience and market competitiveness,' says Maheshwari. 'A solar system of 100 kW, which costs Rs 45-60 lakh, can lower electricity bills by up to 90 per cent and recover its cost in 3-5 years. Supporting programmes such as PM Surya Ghar provide aid up to 60 per cent for setting costs, alongside loans with 7-9 per cent interest. Additional tax reductions with solar PV price depreciation make it even easier financially. Infrastructure sharing, leasing, and Energy-as-a-Service models help decrease operational and upgrade expenditures,' says Kedia. The main challenge isn't just cost but rather lack of clarity on cost-effective ways to adopt green practices, say experts and stakeholders. In reality, many sustainability measures, such as energy-efficient motors and solar rooftops, can pay for themselves quickly, with some interventions breaking even in under 18 months, as seen in energy audits in industrial clusters, they add. 'There are financing schemes available—from SIDBI's green loans to World Bank credit lines—but most MSMEs don't know how to access or navigate them. What's missing is not intent but implementation support if we want this shift to scale,' says Chatterji. Immediate challenges Experts say that the MSMEs face three key challenges, including lack of awareness about affordable and scalable green alternatives, limited access to financing, with existing schemes needing better outreach and accessibility, and fragmented infrastructure, particularly in tier II and tier III cities, with underdeveloped supply chains and support systems for green technology. To overcome this, we need more public-private partnerships, grassroots-level training, and tech-driven platforms that handhold MSMEs through their green journey,' say experts. 'Less than 10 per cent of MSMEs are currently accessing formal green finance, primarily because of collateral and credit barriers, and 33 per cent of MSMEs do not know about major schemes, such as ZED, etc. Also, 70 per cent of MSMEs are reliant on diesel generators because of grid unreliability, and more than 60 per cent report relying on machinery that is too old to upgrade. These barriers present significant challenges for the MSME transition,' adds Kedia. While there is some very good policy-based support for a green MSME transition, according to experts, it is mostly disjointed, and there is little financing available under programmes focused specifically on MSME sustainability. 'Many of these programmes are also quite complex to comply with. Several reports indicate that 56 per cent of MSMEs face a lack of trained technicians, and only 5 per cent are engaged in clean-tech R&D. Some longer-term programmes for bringing MSMEs to a green transition would include expanding the operational Green Credit Guarantee Fund, scaling up collective infrastructure models, and using digital tools to streamline the process for applying to access public subsidies,' says Kedia. MSMEs require practical support to drive their green transition, including sector-specific technical advisors, simplified ESG tools, better visibility in green procurement and access to global markets that meet sustainability standards, according to experts and stakeholders. Without these essentials, the green transition will likely remain inaccessible to most MSMEs, they add.
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Business Standard
18-05-2025
- Business
- Business Standard
Indian Biogas Association hails govt move to hike procurement price of CBG
Industry body Indian Biogas Association (IBA) on Sunday hailed the government's decision to hike the procurement price of compressed biogas, saying the move will meaningfully support unlocking the latent value of the sector. However, it stated that the hike is less than the anticipated and hoped for another upward revision soon. The petroleum ministry has revised upward the CBG procurement price from Rs 1,380 per Metric Million British Thermal Unit to Rs 1,478/MMBTU, with effect from June 1. The revised rate will be effective till October 31, 2025. This move demonstrates greater appreciation for the economics of the industry and will meaningfully support unlocking the latent value of bioenergy in India, IBA said in a statement. Gaurav Kedia, IBA Chairman, said: "This change in price is a step in the right direction for CBG developers as it corresponds with their reality. However, a higher revision was anticipated, considering the economics of the production, which can also shoulder CBG's long-held aspirations of contributing to the sustenance of India's energy independence by fastening progress on existing and new developers in the industry." According to Kedia, while a parity with CNG at pre-tax level is achieved with the announcement, there is an urgent need of further upward revision to honour and provide premium to the greener molecule. He also suggested "formulating a green certificatation framework with cap and trade should be mandated for companies having higher carbon footprint is the way forward". IBA in its statement said that a further upward revision could play a crucial role in improving return on investment for entrepreneurs and MSMEs, scaling up decentralised CBG production across rural India, attracting institutional finance and FDI into the sector, and accelerating progress toward national targets on clean mobility, waste management, and energy self-reliance. The present step reaffirm the government's objective of supporting the adoption of cleaner fuel, facilitating economic development in rural areas, and advancing the country's circular carbon-neutral economy, it added.
Time of India
08-05-2025
- Business
- Time of India
Existing government initiatives must be integrated to boost biogas sector: IBA
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Indian Biogas Association IBA ) on Thursday proposed integrating government initiatives like Sustainable Alternative Towards Affordable Transportation (SATAT), GOBARDhan, and CBG (compressed biogas) blending into a unified national mission to boost the biogas sector. This suggestion was made in a white paper launched by Union Minister Nitin Gadkari , which also recommended centralised tracking, standardised benchmarking, and integrated funding to scale up biogas deployment in recommendations included mandating phased CBG blending across sectors, creating a green certificate ecosystem and accelerating decentralised biogas infrastructure development. Additional proposals included incentivising waste segregation and feedstock supply chains, improving rural energy access with clean cooking fuel, bridging the skill gap through workforce programs and empowering women through biogas it called for promoting biogas as a primary cooking fuel in rural India by introducing targeted subsidies, encouraging the use of LPG-biogas hybrid stoves, and aligning efforts with the Ujjwala Yojana and City Gas Distribution (CGD) networks.'Approximately 62 million tonnes of municipal solid waste lacks proper scientific treatment and goes underutilized annually, while over 80% of rural households still depend on biomass fuels. Meanwhile, India imports over 85% of its crude oil, exposing the economy to global price volatility and straining foreign reserves. Unifying all three missions under one, will bring in synergies and better management and utilization of existing resources," IBA Chairman Gaurav Kedia said in the emphasised that Indian agriculture needs to become economically viable to make the country self-reliant (Atmanirbhar).The Union Minister highlighted examples of ethanol production from crops like corn, bamboo, and broken rice, which have increased farmers' incomes. For instance, corn prices rose from Rs 1,200 to Rs 2,600 per quintal after its use in ethanol production began, demonstrating the potential for economic growth through viable noted that developing a strong biofuel market will help reduce India's demand for fossil fuels. "If we want to reduce pollution, then green fuel is very important for sustainable development," he imports over 85% of its crude oil, making the economy vulnerable to global price fluctuations and putting pressure on foreign exchange India's fossil fuel import bill declined 16% to $132.4 billion in the 2023-24 fiscal year compared to the previous year, even with a slight increase in crude oil imports. The fossil fuels still account for a significant portion of India's energy consumption. In fact, fossil fuel consumption in India rose 8% in 2023, making up 89% of the country's overall energy consumption.
Mint
08-05-2025
- Business
- Mint
India needs to integrate existing govt initiatives related to biogas sector: IBA
New Delhi, May 8 (PTI) India needs to integrate existing government initiatives related to the biogas sector, Indian Biogas Association said on Thursday. In a white paper launched by Union Minister Nitin Gadkari, Indian Biogas Association (IBA) advocated for the unification of existing government initiatives - Sustainable Alternative Towards Affordable Transportation (SATAT), GOBARDhan, and CBG (compressed biogas) blending - under a single national mission, according to a statement. The IBA released the white paper during the 4th BBB Summit organised in the national capital on Thursday, the association said in the statement. Further, the white paper suggested the need for centralised tracking, standardised performance benchmarking, and integrated funding mechanisms to drive rapid and large-scale deployment of biogas solutions in India. The key recommendations included mandating phase-wise CBG blending across sectors, formulating a green certificate ecosystem, and fast-tracking decentralised biogas Infrastructure. It also proposed the incorporation of incentivising waste segregation and feedstock supply chains, strengthening rural energy access with clean cooking fuel, bridging the skill gap through dedicated workforce programmes and empowering women through biogas micro-enterprises. The integration of biogas into public transport systems and smart building infrastructure will boost the sector, it said. Additionally, it called for promoting biogas as a primary cooking fuel in rural India by introducing targeted subsidies, encouraging the use of LPG-biogas hybrid stoves, and aligning efforts with the Ujjwala Yojana and City Gas Distribution (CGD) networks. "Approximately 62 million tonnes of municipal solid waste lack proper scientific treatment and go under-utilised annually, while over 80 per cent of rural households still depend on biomass fuels," IBA Chairman Gaurav Kedia said in the statement. Meanwhile, he stated that India imports over 85 per cent of its crude oil, exposing the economy to global price volatility and straining foreign reserves. IBA organised the summit in partnership with Reveille Energy and Indus Exposium. "By harnessing the untapped power of decentralised biogas systems, India can redefine energy equity, empower rural and urban communities alike, and build a circular economy that is regenerative by design," Rohit Dev, Advisor at IBA and MD at Reveille Energy, said. "This white paper presents a pragmatic, multi-stakeholder roadmap to unlock this potential. But policies alone are not enough, and what India needs now is conviction, coordination, and collective action," Dev added.
Time of India
28-04-2025
- Business
- Time of India
Biogas sector gets ₹200 cr investment commitments at RenewX 2025: IBA
The biogas sector has received investment commitments of more than ₹200 crore at renewable energy exhibition RenewX 2025 , industry body Indian Biogas Association ( IBA ) said on Sunday. The three-day expo was held at the Chennai Trade Centre, Nandambakkam from April 23 to 25. The event, organised by Informa Markets, saw investment commitments of ₹200 crore through various MoUs (memorandum of understandings) in the biogas industry, IBA sid in a statement. RenewX brought together stakeholders from across the bioenergy, solar, wind, energy storage, and management sectors, offering a platform for strategic collaborations and progressive discussions. With a focus on bioenergy innovations, sustainable partnerships, and policy dialogue, the bioenergy sector attracted strong interest from industry, professionals, investors, and policymakers, the statement said. "This is the first time that we have showcased biogas sector capabilities in Chennai. Our interactions here have laid the groundwork for several new collaborations and have deepened interest in bioenergy solutions, especially in southern India," Gaurav Kedia, Chairman of IBA, said in the statement. IBA President A R Shukla noted, "RenewX 2025 showcased a unique blend of technology, grassroots innovation, and policy alignment. It is clear that bioenergy can play a pivotal role in reshaping India's energy future especially when supported by the right regulatory and financial ecosystem." Founded in 2011 and revitalised in 2015, the IBA has been at the forefront of advancing bioenergy solutions across India. Collaborating with international bodies like the German Biogas Association, IBA advocates for sustainable waste management and clean energy generation through biogas.
