Bank of Baroda Partners with SIDBI to Launch BOB Earth Circular Economy Scheme for MSEs

In a significant push towards sustainable growth for micro and small enterprises (MSEs), Bank of Baroda (BoB) has joined hands with the Small Industries Development Bank of India (SIDBI) to introduce the bob Earth Circular Economy Scheme (MSE Spice) under its Green & Sustainable product category.

The Memorandum of Understanding (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, BoB and Mr. S. R. Meena, General Manager, SIDBI.

Key Features of the Scheme

The initiative offers several incentives to encourage MSEs to adopt green technologies:

• 25% capital subsidy for eligible MSEs implementing sustainable practices.
• Collateral-free loans available under the CGTMSE framework.
• Relaxed margin requirements, making formal credit more accessible.
• Support for investments in energy efficiency, sustainable production and waste reduction.

Commenting on the launch, Mr. Madhur Kumar said,
“With the bob Earth Circular Economy Scheme, we are reaffirming our commitment to sustainability while supporting the growth aspirations of MSEs. This initiative will help enterprises transition to greener operations, enhance efficiency and competitiveness and contribute to India’s broader climate goals.”

Strategic Significance

The collaboration strengthens BoB’s green finance portfolio and positions it as a leading public sector bank promoting sustainability-linked lending. For SIDBI, the partnership enhances its mission to expand sustainable credit access for MSEs.

The scheme aligns with India’s Paris Agreement commitments and the government’s vision of Aatmanirbhar Bharat and achieving net-zero emissions by 2070. With MSEs contributing nearly 30% of India’s GDP and around 40% of exports, fostering green practices in this segment is critical for both economic and environmental objectives.

By offering capital subsidies, easier access to formal credit, and technical support from SIDBI, the bob Earth Circular Economy Scheme is poised to unlock new growth avenues for thousands of MSEs, helping them modernize operations and integrate sustainability into their business model.