500 MSMEs apply for sops under two key schemes for green investments and circular economy in first three months of their launch

New Delhi: At least 500 micro and small enterprises (MSE) have applied for incentives under two key schemes for green investments and circular economy in the first three months of the their launch as they prepare for global climate regulations and consumers' preference for eco-friendly products, officials said. The Green Investment and Financing for Transformation (GIFT) and Scheme for Promotion and Investment in Circular Economy (SPICE) were launched in December.

"380 crore loan has been disbursed under the two schemes till March," said an official. The GIFT scheme provides an interest subvention of 2% every year for five years on loans up to 2 crore to MSEs adopting an environment-friendly technology, while SPICE offers capital subsidies to MSEs for brownfield projects, nudging them to expand or upgrade their existing circular economy projects.

A circular economy extends producers' responsibilities, holding them accountable for what happens to the product after its useful years.


SPICE, an outlay of Rs 472.5 crore, runs from FY24 to FY27, while GIFT has an outlay of 478 crore for three years until FY26.

Given MSEs have a cash crunch, adopting greener and more efficient technology isn't a priority unless they can see tangible benefits. "We have categorised MSEs into enterprises wanting to adopt and those that don't. For the reluctant ones, we demonstrate concrete gains to them such as less energy consumption, which translates into saving money in the long run," added the official.