The government is set to unveil a Green MSME Policy in the upcoming budget, aimed at promoting sustainable practices among micro, small, and medium enterprises (MSMEs) while reducing their carbon emissions. This initiative aligns with India’s commitment to achieving net-zero carbon emissions by 2070.
1. Financial and Technological Support for MSMEs
The Ministry of MSME has proposed a comprehensive policy to the Finance Ministry to provide financial, technological, and regulatory support to MSMEs. This policy focuses on enabling these enterprises to adopt renewable energy, reduce emissions, and embrace circular economy practices such as waste management and the use of recycled products.
2. Oversight Body for Implementation
To ensure effective implementation, an oversight body will be established under the Ministry of MSME. This body will:Monitor compliance with sustainable norms.Offer guidance to smaller businesses transitioning to greener operations.Support MSMEs in adhering to both domestic and global environmental standards.
3. Addressing the Cost of Sustainability
Transitioning to green operations often involves additional costs. The policy aims to mitigate these through a multi-pronged approach, offering:Financial assistance for micro and small enterprises to cushion the expenses.Technological support for larger enterprises to meet emission compliance.Regulatory frameworks to ensure adherence to sustainability standards.
4. Tailored Approach by Business Size
The policy will adopt a differentiated strategy based on enterprise size:Micro enterprises (revenue up to ₹5 crore): Higher financial aid and stringent oversight.Small enterprises (revenue ₹5-50 crore): Balanced financial and regulatory support.Medium enterprises (revenue above ₹50 crore): Technological assistance and emission compliance monitoring.
