Union Bank, Tata Power Renewable join hands to help MSMEs switch to solar

• As a part of the tie-up, MSMEs who are Tata Power customers can avail loans up to ₹8 crore, with nil or minimum collateral.
  
• The scheme requires a minimum down payment of only 15-20% of project cost, says Union Bank.
  
• This tie-up is a part of UBI’s solar scheme called Union Solar.

Indian public sector bank Union Bank of India has tied up with Tata Power Solar Systems, a subsidiary of Tata Power Renewable Energy, to help the micro, small and medium enterprises (MSME) set up rooftop mounted solar units through a term loan.

MSME industries who are Tata Power customers can avail loans up to ₹8 crore with nil or minimum collateral.

The objective of this collaboration is to improve access to green energy, and help MSMEs save on electricity costs.

“The scheme also requires a minimum down payment of only 15-20% of project cost thus making it very attractive for MSMEs,” informs Union Bank.

This is a part of the bank’s solar scheme called 'Union Solar' which was launched at a pan-India level, to relieve the MSMEs from the stress of higher power costs and grid exigencies.

“We are happy to associate with Tata Power in our efforts to help small businesses improve their access to green energy through the solar solution that is reliable, affordable and self-paying in the long run. We expect to see an impressive growth in the use of solar power in the MSME sector that will also make them more competitive in the domestic and international markets,” C M Minocha, chief general manager, Union Bank of India said.

MSMEs can avail the dual services of Solar EPC by Tata Power Solar, financed through term loan facility by Union Bank of India.

"In the last few years, the Indian MSME industry is experiencing a behavioural shift towards green energy solutions. We are committed to make TPREL a one-stop solution for the solar rooftop industry,” said Shivram Bikkina, chief- rooftop, Tata Power Renewable Energy.

SEE ALSO: Paytm shares tank over 9% as 4.5% of its equity changes hands
Pakistan's default risk soars amid political turmoil says a Dawn news report
Mumbai-based EV startup launched a two-seater electric car with no front passenger seat