The salient features of the scheme are as follows:

1. Purpose
   
   
The objective of this scheme is to promote energy saving measures in SMEs by providing financial assistance for the implementation of Energy Saving Devices/Projects and thereby contributing to environmental improvement and economic development of the country. The modernization/expansion projects connected with implementation of energy saving measures are also eligible for financial assistance under this scheme. Similarly existing SMEs going for replacement of old machineries and equipments with modern energy saving devices will also come under the scheme. There is wider scope for the scheme in areas such as Rerolling Mills, Rice Mills, Crusher Plants, PVC Products, Tourist Hotels and Resorts. The following activities are also eligible for financial assistance under this scheme.


1. Acquisition (including lease and rental) of energy saving equipments/facilities, including newly installing, remodeling and upgrading of existing units.
   
   
2. Replacement of obsolete industrial furnaces and/or boilers or burners etc. or introduction of additional equipment which improve performance comparable to those of replacement.
   
   
3. Installation or improvement or adoption of such manufacturing machinery and equipment that meet the specific requirement for energy performance standard provided by the related energy conservation act/code in India (i.e., Top Runner Equipment, Energy Labels, etc.).
   
   
4. Installation of building envelopes, equipments, heating systems, lighting and electrical power/motors in compliance with energy performance standard provided in the Energy Conservation Building Code (ECBC).
   
   
5. Introduction of the equipments that utilise alternative energy sources which can reduce Green House Gases (GHG) emissions such as natural gas, renewable energy, biogas, etc. instead of fossil fuel such as oil and coal, etc.
   
   
6. Clean Development Mechanism (CDM) projects involving clusters level intervention by a change in the process and technologies for the cluster as whole duly supported by technical consultancy will be eligible for coverage.
   
   
7. Sectors such as the arms industry, narcotics industry or any unlawful business are non-eligible business and shall not be eligible for finance under this scheme. Similarly such projects which may result in larger negative social and environmental impact would also not be eligible under this scheme.
   
   
8. It is expected that the proposed investment shall result in reduction in energy consumption, improvement in energy efficiency and reduction in carbon dioxide.
   
   
9. The projects shall comply with all National and State laws in as much as regulations in respect to environment is concerned. Possible positive social impacts should be encouraged.
   
   
2. Upper loan limit
   
   
1. For Corporation/Companies/ Co-operative Societies : Rs. 200 lakhs.
   
   
2. Other cases including Trust : Rs. 100 lakhs.
   
   


3. Repayment period : Upto 3 years (including gestation period upto 3 months).
   
   
4. Gross interest rate : 14.5% (PLR - 0.5%).
   
   
5. Effective interest rate : 6% (after allowing rebate of 8.5%).
   
   
6. Processing fee : No processing fee.
   
   

1. Well documented energy audit report carried out by an Energy Audit firm registered in BEE (Bureau of Energy Efficiency) or by Energy Management Centre (EMC).
   
   
2. Clear narration of savings and investment.
   
   
3. Action plan details for implementation.
   
   
4. Application can be submitted to KFC a copy of which will be given to EMC, for vetting the proposal.
   
   
5. EMC will recommend the proposal within 15 days from the date of receipt and forward its comments to KFC.

Nodal Officer, Energy Management Centre:
Shri. Johnson Daniel,
Energy Technologist,
Tel: 0471-2594922
Email: emck@keralaenergy.gov.in