In a significant development for India’s clean energy sector, DCM Shriram Ltd. has secured a ₹100 crore sustainable finance loan from Standard Chartered Bank. This loan marks a major step forward for DCM Shriram’s environmental sustainability goals and will be used to fund the construction of a new compressed bio-gas (CBG) plant in Uttar Pradesh.
Bio-Gas Plant to Convert Waste into Clean Energy
The upcoming CBG plant, located at the company’s Ajbapur Sugar Unit, will have a daily production capacity of 12 tonnes. The plant’s key innovation lies in its utilization of “pressmud,” a waste product generated during sugar manufacturing. This waste will be processed to produce bio-gas, a clean-burning renewable fuel. The project exemplifies a circular economy approach, effectively reducing waste and generating valuable clean energy simultaneously.
Partnership Strengthens DCM Shriram’s Sustainability Efforts
This loan marks DCM Shriram’s second sustainable finance transaction in just six months, underlining the company’s growing commitment to environmental responsibility. DCM Shriram’s Executive Director and Group CFO, Amit Agarwal, emphasized the company’s dedication to “building a circular economy and integrating sustainability across our business operations.” This strategic shift positions DCM Shriram at the forefront of companies embracing eco-conscious practices.
Standard Chartered Bank: A Leader in Sustainable Finance
Standard Chartered Bank, on the other hand, has emerged as a prominent player in financing sustainable projects. Shobana Chawla, the bank’s Executive Director of Sustainable Finance, reiterated their unwavering commitment to supporting clients in transitioning towards net-zero emissions. She also highlighted the bank’s ambitious group-level target of mobilizing USD 300 billion in sustainable finance by 2030. This collaboration between Standard Chartered Bank and DCM Shriram reflects a shared vision for a sustainable future.
DCM Shriram’s Continued Expansion into Sustainable Sectors
DCM Shriram, a well-established conglomerate with a diverse business portfolio encompassing chlor-vinyl, power, cement, sugar, and fertilizers, has embarked on a strategic expansion into the bio-energy sector. The company’s investment in the CBG plant signifies its willingness to adapt and embrace sustainable practices, ensuring long-term growth alongside environmental responsibility.
This collaboration between DCM Shriram and Standard Chartered Bank signifies a significant development for India’s clean energy sector. By promoting waste reduction, clean energy production, and sustainable business practices, this project paves the way for a more environmentally conscious future.
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