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FAQ - 4E


4E (End to End Energy Efficiency) is a Scheme for financing End to End Energy Efficiency Investments in MSMEs for implementing energy efficiency measures at concessional interest rates and softer terms.

Under 4E Scheme, SIDBI provides technical and financial support to MSMEs for implementing energy efficiency measures on end to end basis.

SIDBI  provides the following technical support through its associate ISTSL:

  1. Walk Through Energy Audit – Identification of Potential MSMEs for 4E.
  2. Detailed Energy Audit – Complete energy efficiency diagnosis and measurement.
  3. Detailed Project Report – Complete information on energy consumption and recommendation on remedial measures.
Measurement & Verification Audit – Validation of actual energy savings achieved

SIDBI provides the following financial support :

  1. Term loan upto maximum. Rs. 1.50 crore Or 1/5th of the annual turnover, whichever is lower, extended at competitive rate.
  2. 90% coverage of project cost at concessional interest rate.

MSME units in the manufacturing or services sector are eligible borrowers.

  1. The unit should be in operation for at least three years and should have earned cash profit in the last two years of operation and should not be in default to any bank/FI.
  2. The unit should have undergone the process of Detailed Energy Audit (DEA) through a technical agency / consultants having BEE certified Energy Auditors. Further, the Detailed Project Report (DPR) prepared by the technical agency / consultant should have been vetted by EEC, SIDBI
  3. The proposal should have minimum eligible SIDBI rating of C8.
  4. The unit should not have availed Performance Linked Grant under the WB-GEF Project for the proposed EE Project.
  5. The unit should be in compliance with the Environment & Social Management Framework (refer Appendix I, II & III for details).

Individual, Proprietorship Concern, Partnership Firm, Limited Liability Partnership (LLP), Company, Society, Trust, Association of persons and any other legal entity as may be considered by SIDBI from time to time.

Minimum loan amount= Rs. 10 lakh

Maximum loan amount = Rs. 150 lakh (not exceeding 1/5th of the total turn-over of the applicant unit (Not applicable for ESCOs).

For meeting part cost of

  1. capital expenditure including purchase of equipment/machinery, installation, civil works, commissioning, etc. for implementing the Energy Efficiency measures as recommended in the DPR,
  2.  any other related expenditure required by the unit, provided it is not more than 50% of (i).  
   NOTE: All above projects should be mentioned in DPR

No. Greenfield projects are not eligible under the Scheme.

No, financing of second hand machinery/equipment; purchase of land and construction of building (except minor civil works) are not elegible under the Scheme

    1. Lower Rate of Interest.
    2. Lower Energy Audit Fee
    3. Lower Promoter Contribution ( minimum: 10%).
    4. Savings in Energy Bills.
    5. Savings in regular O&M expenses.
    6. Savings in sudden Investments due to failure of utilities.
    7. Reduction in cost of production.

MSMEs can directly approach of BEE certified energy auditor. Alternatively, India SME Technology Services Limited (ISTSL) a Joint Venture of SIDBI, SBI, OBC, IOB, IB can also be approached for technical support under 4E Scheme. The address and contact details of ISTSL are  given below;
SIDBI’s Institution: India SME Technology Services Limited (ISTSL) (Joint Venture of SIDBI, SBI, OBC, IOB, IB.)
Tel. 011-43526652 or 28525535

E-mail: istsl@techsm
  1. ISTSL will appoint reputed BEE certified energy audit agency for undertaking DEA and DPR.
  2. Finalization of DPR will be undertaken by ISTSL after complete examination & consent from unit.
  3. Measurement & verification (M&V) by an agency.
  4. ISTSL will submit M&V report to EEC SIDBI.