New Delhi: Bank of Baroda (BoB), one of India’s leading public sector banks, has signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI) to launch the bob Earth Circular Economy Scheme (MSE Spice) under its Green & Sustainable product category.
The scheme is designed to encourage Micro and Small Enterprises (MSEs) to adopt sustainable practices, improve resource efficiency, and align their growth with India’s climate and sustainability goals.
MoU Signing Ceremony
The MoU was signed in New Delhi by Mr. Madhur Kumar, Chief General Manager, MSME Banking, Co-Lending & SCF Department, Bank of Baroda, and Mr. R. K. Singh, Chief General Manager, Green Climate Finance Vertical, SIDBI.
The signing was witnessed by Rachna Mishra, General Manager, Government Relationship Department, Bank of Baroda, and Mr. S. R. Meena, General Manager, SIDBI.
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Key Features of the Scheme
- 25% capital subsidy for eligible MSEs to adopt green technologies.
- Collateral-free loans available under the CGTMSE framework.
- Relaxed margin requirements, easing access to formal credit.
- Support for investments in sustainable production, energy efficiency, and waste reduction practices.
Leadership Statements
Speaking on the launch, Mr. Madhur Kumar, CGM, Bank of Baroda, said:
“With the launch of the bob Earth Circular Economy Scheme, we are reinforcing our commitment to sustainability while supporting the growth aspirations of MSEs. This initiative will enable enterprises to transition towards greener operations, boost their efficiency and competitiveness, and contribute to India’s broader climate and sustainability goals.”
Strategic Significance
This initiative strengthens Bank of Baroda’s green finance portfolio, positioning it as a leading public sector bank in driving sustainability-linked lending. For SIDBI, which has long been the nodal institution for MSME development and financing, the partnership enhances its ability to push forward sustainable and inclusive credit access for small businesses.
The scheme also aligns with India’s global commitments under the Paris Agreement and the government’s push for Aatmanirbhar Bharat and net-zero emissions by 2070.
Broader Context
- The MSE sector contributes nearly 30% to India’s GDP and accounts for about 40% of exports, making sustainability adoption in this segment critical for both economic and environmental goals.
- With growing emphasis on green supply chains worldwide, Indian MSEs adopting eco-friendly practices will gain a competitive edge in global trade.
Outlook
The bob Earth Circular Economy Scheme is expected to unlock fresh financing opportunities for thousands of MSEs, enabling them to modernize operations and integrate sustainability into their growth model. With capital subsidies, easier credit access, and support from SIDBI, the scheme could serve as a catalyst for India’s green economic transition while empowering the backbone of the economy—its micro and small enterprises.
About Bank of Baroda
Bank of Baroda, a leading public sector bank, serves over 150 million customers through a strong global presence spanning 17 countries. Known for its customer-centric products and innovation, the bank continues to expand digital banking solutions while delivering competitive retail, corporate, and international banking services.
About SIDBI
SIDBI (Small Industries Development Bank of India) is a Public Sector Undertaking (PSU), a government-established statutory body created by an Act of Parliament in 1990 to promote and finance Micro, Small, and Medium Enterprises (MSMEs) in India. Shares of SIDBI are held by the Government of India and other government-controlled public sector institutions and banks.
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