Union Bank, Tata collaborate to enable MSME shift to solar power

at 8:44 pm
net metering cap
Representative pic of a solar plant

New Delhi: Micro, Small and Medium Enterprises (MSMEs) can now have a convenient option of tapping solar power, with the Union Bank of India (UBI) joining hands with Tata Power Solar Systems Limited (TPSSL), a subsidiary of Tata Power Renewable Energy Limited (TPREL), to facilitate it.

The objective of this collaboration is to enable MSMEs to have improved access to green energy and save on the cost of electricity, thus making them more profitable.

The association will be implemented under UBI’s solar scheme called ‘Union Solar’ which was launched on a pan-India level to relieve the MSME’s from the stress of higher power costs and grid exigencies, according to a press statement.

MSMEs can avail the dual services of Solar EPC by TPSSL, financed through term loan facility by Union Bank of India, wherein industries can avail up to Rs. 8 Crores of loan amount at best possible interest rates (exclusive for Tata Power customers) with nil or minimum collateral, it said.

The scheme also requires minimum down payment of only 15-20% of project cost thus making it very attractive for MSMEs.

“Solar solutions will help bring a turnaround in the MSME sector by reducing their grid dependency and making them independent power producers with greater control over their productivity and output,” the statement said.

“This move is expected to achieve various goals, such as enabling ease-of-doing-business for the MSMEs, creating a local industry and entrepreneurs who will contribute to the larger economy of the country, and championing ‘Make in India’ initiative,” it said.

“By addressing the financing challenge, we expect to see an impressive growth in the use of solar power in MSME sector that will also make them more competitive in the domestic and international markets,” the statement quoted C M Minocha, Chief General Manager of Union Bank of India. 

Shivram Bikkina, Chief Rooftop, TPREL, said, “By joining hands with Union Bank of India, we look forward to making this collaboration a benchmark for the industry to emulate and take India’s green energy success journey to greater heights.”