MSDE aredta og setter rere tp ‘Small Industries Development Bank of India WB-GEF PROJECT “FINANCING ENERGY EFFICIENCY AT MSMES” PERFORMANCE LINKED GRANT (PLG) SCHEME FOR IMPLEMENTATION OF ENERGY EFFICIENCY MEASURES 1, OBJECTIVE 1.1, The Performance Linked Grant (PLG) scheme is one of the components of the World Bank — GEF Project: “Financing Energy Efficiency at MSMEs”, hereinafter, referred to as the Project. The Project is being jointly implemented by SIDB! and Bureau of Energy Efficiency (BEE). 1.2. The objective of the PLG scheme is to encourage implementation of EE measures by MSME units in the five targeted MSME Clusters viz. Ankleshwar, Faridabad, Pune, Kolhapur and Tirunelveli under the Project. 2, SCHEME DETAILS 2.1. Under the PLG scheme, a Performance Linked Grant shall be offered as an incentive to the MSME units, who have participated in the Project by way of undergoing the Detailed Energy Audit and preparation of Investment Grade Detailed Project Report (IGDPR) process through the IGDPR Consultants (viz. TERI or DESL or See-Tech) hired under the Project, to implement the EE measures as suggested in the IGDPRs. 2.2. The broad details of the sub-schemes proposed are as under: Ss. [Particulars ‘Sub-scheme! | Sub-scheme I No. 1_| Capital investment made ‘Above Rs.2 lakh | Above (Actual investment made or estimated investment | to Rs.10lakh | Rs.10 lakh in the IGDPR, whichever is lower) Recommended date for IGDPR Completion February 28, | February 28, (desirable to complete DEA and IGDPR by this date | 2014 2014 and providing signed consent letter to IGDPR consultants by the MSME unit for commencing implementation of EE measures, after DEA & IGDPR process is completed) 3. | Cut-off date (for completion of implementation of the EE measures as well as for lodgement of PLG application with SIDBI) April 30,2014 | April 30, 2014 1[PageSDE anedia og efter repre fas ‘Small tats Doraopeans Bank of India 4 | Amount of eligible PLG per MSME unit 15% of Capital [20% of Capital investment investment made for|made for implemented _ | implemented EE measures. | €E measures or Rs.10 lakh, whichever is [ lower. 3. TERMS & CONDITIONS : Detailed terms & conditions of the “Performance Linked Grant (PLG)” scheme are as under: 3.1. _PLG shall be provided to only those MSME units who have undergone and completed the DEA and IGDPR process under the Project and have provided signed consent letter to the IGDPR consultants for commencing implementation of EE measures, after DEA & IGDPR Process, both to happen preferably on or before the recommended date i.e. February 28, 2014 AND should have implemented all or part of the identified / recommended EE ‘measures as listed in the IGDPR on or before the cut-off date i.e. April 30, 2014 provided these measures account for at least 75% of the total estimated energy savings in the 'GDPR ( in TOE terms) for all the recommended EE measures, subject to realizing actual annualized energy savings of 75% of estimated figures presented in the IGDPR (in TOE terms) for EE measures actually implemented [as verified during the Measurement & Verification (M&V) process). 3.2. The MSME unit should be in compliance with the regulatory environment and social requirements currently in force as stated in the World Bank ESMF framework. The MSME unit should also be in compliance with the acceptable commercial practices under World Bank procurement guidelines. 3.3. _PLG shall be released only after verification through a third party M&V Consultant (viz. Confederation of Indian Industries i.e. Cll) appointed by SIDBI for the purpose of the following: EE measures implemented, actual energy savings achieved vis-a-vis total estimated savings, and the investment costs (capital investment) incurred for the EE measures, etc. 3.4. PLG amount shall be released to the unit’s account with its bank within a reasonable Period of around 30 days from the time of completion of M&V process, subject to the unit furnishing the acknowledgement letter within stipulated time, which may be adjusted by the concerned bank for reducing the loan, if a loan is involved, 2[ Page35, 3.6. 3.7. 3.8. 3.9. 3.10. 3[Page MSD arreeter seller feeprer Bes ‘Small Indust Development Bank of India Coverage shall be allowed to eligible units under only one sub-scheme ie. either Sub- Scheme | or I! as illustrated in the table above. The coverage would be extended to eligible ‘maximum number of units out of the budget / monies available from World Bank — GEF for the purpose. In case, eligible applications exceed the available budgetary resources, the units who have completed DEA and IGDPRs on or before February 28, 2014 shall only be considered for PLG. In case if the number of such units exceeds the available budget, the PLG amount shall be adjusted on pro-rata basis or in such proportion or in a manner decided by SIDBI at its sole discretion in consultation with BEE, Subject to other eligibility conditions being met, the PLG amount to be paid by SIDBI to the participating MSME shall be decided based on the capital investment (and associated implementation expenses, like installation cost, etc) made by the unit (actual investment made or estimated investment in the IGDPR, whichever is lower). Further, only those equipments / machinery / heads of expenditure shall be allowed which have been indicated in the IGDPR for the implemented EE measure/s) and have been implemented after the MSME provided the consent letter to participate in this Scheme. The MSME units which have not furnished or are not willing to furnish, to IGDPR and MV Consultant, the required information / details like copies of balance sheets, consent letter, energy consumption and production data, copies of statutory compliances including MSME registration certificate, PCB Consent letter, etc., implementation completion, details of costs incurred / investment made, details of vendors, copies of invoice or purchase order, copies of bank account statements evidencing’ the purchases, etc. shall not be eligible to participate in the PLG scheme. Units shall agree that results from these M&V reports, aggregated as needed to protect confidentiality concerns and any proprietary information, may be made publically available for the purposes of demonstration, Upon submission of the PLG application by the unit, SIDBI shall seek submission of Implementation Completion Report from the respective IGDPR Consultant. Thereafter, M&N of the unit shall be undertaken by the SIDBI-appointed M&V Consultant within a period of 30 days. Upon submission of the M&V Report by the M&V Consultant to SIDBI and acceptance thereof and after satisfying itself with the eligibility norms, the PLG application for the eligible MSME units shall be considered for sanction by SIDBI. Upon sanction, the unit shall be informed and shall be requested to submit an acknowledgement for release of the grant money (as a advance payment receipt), The PLG Grant will be released to the unit's account with its bank within 15 days of the receipt of acknowledgement letter from the unit.SIDBI aredtar org seiter fiers Sa ‘Small Industries Development Bank of India 4, HOWTO APPLY 4.1. The eligible MSME units shall be required to submit a PLG application in the prescribed format, along with the Implementation Completion Report of the respective IGDPR Consultant, to SIDBI immediately after the implementation has been completed but before the last date i.e. 1700 hrs. on April 30, 2014. Format for PLG application is placed at Annexure-|. The applications received by SIDBI after the last date or the applications which are incomplete and do not contain the requisite informations, attachments, enclosures, etc. shall not be entertained. 4.2. The PLG application of MSME units not willing to undergo the M&V exercise (which includes allowing the Consultant to take suitable measurement in their unit as also furnishing financial / non-financial information / data) within 15 days of receipt of application or within such other period, as may be advised by SIDBI, shall be rejected. 4.3, The PLG application along-with complete details / annexures / enclosures may be submitted at the earliest to us at the following address. Applications received after the last date i.e. after 1700 hrs. on April 30, 2014 shall not be entertained. Rajiv Kumar (DGM) Energy Efficiency Centre, Small Industries Development Bank of India (SIDBI), Videocon Tower, Ground Floor, E-1, Rani Jhansi Road, Jhandewalan Extension, New Delhi ~ 110 055 Ph, 011-23682473-77 E-mail: eec_credit@sidbi.in 4|PageSIDBI areca ay seiter freer ta ‘Small Industries Development Bank of India | PROCESS FLOW: PERFORMANCE LINKED GRANT SUT oem etal NAV re cob) SIDBI seeks comments / recommendation and submission of Mla ol Meola lua tole acl MCl La ROO RTO Tay VN Tees Gus WAP oneteny SIDBI advises the third party consultant to carry out M&V Eran ech rede eCeM une Nite teats mC eta Consultant (appointed and paid for by SIDBI) STU Taleo AVA sLolee yan CoN Lan eed e ler cok|10) 21h (ole PLG Acceptance of the M&V report by SIDBI SC Uen (elem Maule eMail aN momen Alltel WS aT cco eC L1 ¢ Tiles TEL ele Cle Tao ART MTT a PiCmaseilerrctrented aciaiicktits 5|Page One®