For any start-up, power is essential and without it, no start-up can flourish. Recognizing the importance of cost-cutting on fuel and power efficiently, without affecting output, the government set out to take evasive measures.
Initiation by the Small Industries Development Bank of India (SIDBI), 4E was launched on the occasion of World Environment Day. This was mainly done to provide technical backstopping and supporting small industries in managing their power and fuel costs better.
Main objectives of the 4E Scheme
- The main objective of this scheme is to implement measures that ensure effective energy efficiency on an end-to-end basis for small start-ups.
- To meet the part cost of capital expenditure which includes the purchase of equipment required to reduce energy consumption, getting in machinery and putting in the civil work that would reduce energy consumption to profitable levels.
- To enact the Energy efficiency measures as recommended by the project report and any other related expenditures which are required by the MSME unit, provided it is not more than 50% of the Project cost.
- And finally, financing for second-hand machinery or equipment purchase of land and construction are aspects that would not be covered under the scheme, remains to be the only objective in the sole undertaking of the business owner.
Energy efficiency is crucial to any business and getting this part of the business right sets the tone for everything there onwards. This move from the government paves way for more start-ups to bud in the near future.
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