Training Programme on RECP Finance under Global Programme on RECP- Workstream
Event Detail
Contact Details
20-22, November,2017
Hotel Inder Residency
Ahmedabad, Gujarat, India
Contact Name: GCPC
Target Group:
  •  Small and Medium Scale (SME’s) Industries
  • Gujarat Cleaner Production Centre
  • United Nations Industrial Development Organization
Description of contents/ agenda
Global Programme on Resource Efficient and Cleaner Production (RECP) – Work Stream: RECP Finance is initiated under the umbrella of the global joint UNIDO-UNEP Programme on Resource Efficient and Cleaner Production (RECP) in Developing and Transition Countries. Under this programme one of the activities identified is incentives for RECP.
Gujarat Cleaner Production Centre has been working as subcontractor for Ernst and Young (EY) for UNIDO’s Global Programme on Resource Efficient & Cleaner Production (RECP) – Work Stream: RECP Finance to mainstream RECP into government policy and enterprise finance. At present, Number of financing instruments has been created to support the implementation of RECP measures through investments. Those include, financial assistance schemes provided under Gujarat Industrial Policy 2015.
As a part of services to be rendered for this work stream, GCPC in association with UNIDO and Ernst & Young (EY) organized a three day Workshop and Training Programme on RECP Financing under Global Programme on RECP – Work stream: RECP Finance from 20th to 22nd November 2017 at Hotel Inder Residency, Ahmedabad
Day 1: 20th November, 2017, Monday
The programme witnessed presence of dignitaries:
  • Smt D. Thara, IAS, Vice Chairman & Managing Director,
  • Gujarat Industrial Development Corporation & Chairperson, GCPC
  • Smt Mamta Verma, IAS, Industries Commissioner, Government of Gujarat
  • Shri R. Parthasarthy, IAS, (Rtd.) Former Additional Chief Secretary, Government of Gujarat
  • Shri Sailesh Patwari, President, Gujarat Chamber of Commerce & Industries
  • Shri Babubhai Patel, Chairman, Canberra Chemicals, Nandesari
  • Dr. Bharat Jain, Member Secretary, GCPC & Coordinator, ENVIS
  • Shri Hiren Bhendwal, Dy. Environment Engineer, GCPC
  • Shri Punamchandra Rathod, Dy. Environment Engineer, GCPC & Programme Officer, ENVIS
  • Mr. Jesse Ojobor, Industrial Resource Efficiency Expert, UNIDO
  • Mr. Sandeep Pahal, Sustainability Services Supervisor, EY
  • Mr. Christophe Abraham, Senior Consultant, Cleantech & Sustainability-EY
  • Including representatives from industries, financial institutions, leading banking sector
The Workshop and Training Programme was organized to initiate the cooperation with the strategic partners at programme level. Key decision makers/policy makers from relevant Government departments, recognized MSMEs, Consultants & technical experts & financial institutions were invited under one roof to have a “Awareness raising and advocacy orientated session”
The training workshop started with the welcoming of the Chief Guests with memento and with welcome address and brief Introduction of the project by Dr. Bharat Jain, Member Secretary, GCPC & Coordinator, ENVIS.  The session continued with address from Mr. Jesse Ojobor, International Expert, UNIDO, during his address he discussed about the work undertaken by UNIDO towards promoting RECP Concept, Tools, Methodologies and Practices. He also discussed various opportunities of RECP Development in the Industrial Estates. During the session Shri Sailesh Patwari, President, Gujarat Chamber of Commerce & Industries discussed the Scenario of Industrialization in Gujarat including the issues associated with it, saying that growing of industrialization required adequate steps to manage waste and emissions, adopting RECP practices.  The session continued with a special address from Smt D. Thara, IAS, Vice Chairman and Managing Director, GIDC and Chairperson, GCPC, wherein she emphasized on the proper placement of equipments in the industry.
She asked UNIDO experts to guide on how to set-up a planned industrial estate and reviewing the existing estates and identify areas of improvement.  Also she highlighted the issue of sludge handling from CETPs, which needs a proper management. Giving priority to the proper planning of estates she also mentioned that there should be an exhibition center at the entrance of the estate, so as to get the idea of the location of various industries and also about the industry by having the stalls of industry with the details. She concluded her words wishing success to the project and asked UNIDO for the technical assistance for the Sustainable Industrial Development Plans in the state. Smt Mamta Verma, IAS, Industries Commissioner during her address mentioned about various financial assistance schemes for environmental improvement by the state government. The Government is providing financial support to the industries in form of subsidies.
She mentioned that despite of having the norms/ regulations imparted by the state pollution control board we need to have demand based solutions to certain problems. Industries need to initiate such measures on their own where needed for new technological aspects and implement in their premises. The session was then lead forward with presentation by Mr. Sandeep Pahal, from Ernst & Yong (EY), where he outlined the objectives and scope of the project. He mentioned that the objective of such training workshop is to bring together different stakeholders and facilitate interactions. 
The session continued with presentation on RECP Implementation in the respective Industries, wherein Shri Samir Shah, Director, Devarson Industries Pvt Ltd, Odhav, Ahmedabad, Shri Vatsal Naik, Director, Mahavir Synthesis Pvt Ltd., Surat and Shri Babubhai Patel, Chairman, Canberra Chemicals, Nandesari presented the case studies of RECP Implementation in their respective industries. They highlighted about the investments required for the implementation of various suggestions including the advantage of financial assistance schemes provided by Government of Gujarat under the Gujarat Industrial Policy, 2015, where they have given financial assistance in form of subsidy of 35% of the total investment. The session continued with presentations by representatives from financial institutions, Shri Rohan Bhargava, IDFC Bank and Shri Chandan Saw, SIDBI Bank on existing schemes for the MSMEs provided buy their respective banks. 
The session was concluded with vote of thanks by Dr. Jain and Experts from UNIDO who appreciated the active participation of all the participants.
Day 2: 21st November, 2017, Tuesday
Site visits were arranged to the three industries in the Ahmedabad region as a part of this three day training session. The visit was accompanied by Dr. Bharat Jain, Member Secretary, GCPC and Coordinator, ENVIS along with UNIDO and Ernst & Young delegates. The first industrial visit was in Mukesh Industries Limited, Narol, Visit at Paryavaran Mandir, Odhav, The second industry the team visited was Devarson Industries Pvt. Ltd., Odhav, Visit at Akash Organics located at Naroda wherein the industries showcased RECP Implementation as per GCPC’s suggestions in their respective industries to the UNIDO Officials.
Day 3: 22nd November, 2017, Wednesday
Venue: GCPC Office, Gandhinagar
Preparation of Bankable RECP Projects- Technical oriented training session
A brief insight and description on the formation and preparation of bankable RECP projects took place. EY delegate Mr. Sandeep Pahal and Mr. Christophe Abrahan discussed  the involvement of finance in the implementation of RECP in industries.
This was a technical training session on the ground of financial basis with GCPC team and discussion on the involvement of finance in the technical field was held. Bankable projects, their operability, advantages and future scope was discussed on a wider scale. The discussion on overall content of the project fiche and the business plan were prepared and the ways of its implementation. Wherein the role of GCPC was set to raise the awareness on both the sides to fill in the information gap, enable SMEs to qualify for funds, advising financial institutions to offer RECP adapted tools including the benefits of financial assessment for SMEs. There would be a competitive edge for the industries which would be helpful for their growth including Cost reduction benefits and Corporate Social Responsibility from the industries perspective including the barriers of RECP implementation. The several stages of the project were discussed including forming of the team for RECP Implementation, budget allocation for the project, tentative schedule, discussion on pre-financial analysis to assess the feasibility of the project, proper planning of financial mechanism by individual industries and financial institutions.
The discussion was held on economical assessment where Economical and financial parameters involved in the calculation of overall benefit on industrial basis were explained by EY delegates. Two parameters NPV and IRR were discussed on a wider scale. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyse the profitability of a projected investment or project. Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. IRR calculations rely on the same formula as NPV does. The following parameters can also be used for better economical assessment: Current ratio, Debt/Equity (D/E) Ratio, Gross profit margin, Return on assets (ROA), Return on equity(ROE). A case study involving the economic assessment of a cleaner production project at a small electroplating industry, named Acme, in a developing industry was discussed. The exercise focuses on identifying and determining or estimating the related costs both before and after implementation of the CP project. The training session concluded with discussion between experts and the GCPC officials.