Tata Power Solar Systems Ltd (TPSSL), a wholly-owned subsidiary of Tata Power Renewable Energy Ltd (TPREL), on Wednesday said it tied up with the state-run Union Bank of India (UBI) to help the MSME sector switch to solar solutions.

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The objective of this collaboration is to improve access to green energy and save on the cost of electricity, thus making MSMEs more profitable, the company said in a stock exchange release on November 16.

The association will be implemented under UBI's solar scheme called 'Union Solar,' which was launched on a pan-India level to relieve the MSMEs from the stress of higher power costs and grid exigencies.

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MSMEs can avail of the dual services of solar EPC by TPSSL, financed through a term loan facility by UBI, wherein industries can avail up to Rs 8 crore of the loan amount at the best possible interest rates (exclusive for Tata Power customers) with nil or minimum collateral.

The scheme also requires a minimum down payment of only 20 percent of project cost, thus making it very attractive for the MSME, the company said.

Solar solutions will help bring a turnaround in the MSME sector by reducing their grid dependency and making them independent power producers with greater control over their productivity and output.

Shivram Bikkina, Chief, Solar Rooftop Business, TPREL, said, "In the last few years, the Indian MSME industry is experiencing a behavioural shift towards green energy solutions.

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"Being a pioneer in the renewable sector, TPREL is happy to be leading this transition. We are committed to make TPREL a one-stop solution for the solar rooftop industry, where customers can resolve all their queries, including financing concerns," he said.

C.M. Minocha, Chief General Manager of Union Bank of India, said, "We believe, in Tata Power, we have found a natural ally 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. Our Union Solar scheme is specifically designed to address the needs of the MSME sector."

(Edited by : Shoma Bhattacharjee)