Panipat MSMEs Pivot Toward Global Sustainability as EU Green Threads Project Unveils Revolutionary Financing and Traceability Initiatives
Panipat MSMEs join the EU Switch Asia – Green Threads Project to adopt global sustainability standards. The workshop launched Digital Product Passports and Sustainable Production Manuals while providing access to SIDBI green financing and Haryana government incentives. Led by FMC and YES, the event prepares the textile cluster for upcoming EU regulations like ESPR and EPR.
The event opened with a powerful call to action from Mr. Rajat Grover, President of YES, who emphasized the absolute urgency for MSMEs to align with global sustainability norms to remain viable. Central to the discourse was the unveiling of SIDBI’s comprehensive suite of green financing products, including SPICE, EDGE, Working Capital, Machinery Loans, Sthapan, and EV financing, all specifically engineered to support MSMEs in the adoption of sustainable practices. Furthermore, participants were introduced to the Bureau of Energy Efficiency (BEE) ADEETIE Scheme, a dedicated mechanism designed to promote energy efficiency investments. The administrative depth of the workshop was bolstered by Haryana Government officials who detailed state-level support under the Haryana Enterprise & Employment Policy (HEEP), encompassing Freight Assistance, Market Development Assistance (MDA), Testing Equipment support, Quality Certification, Stamp Duty reimbursement, and Electricity Duty exemption. Additional benefits were outlined under the Haryana Textile Policy and the PADMA Scheme, the latter specifically targeting pollution abatement in textile dyeing units.
In a landmark moment for the cluster, the workshop saw the official launch of Sustainable Production Manuals developed specifically for the Panipat Textile Recycling Cluster, alongside the debut of a Digital Product Passport (DPP) pilot programme supported by Green Story. This pilot aims to revolutionize data readiness and traceability of textile waste within Panipat. These financial and technical interventions were explicitly linked to upcoming European Union regulations, including the Ecodesign for Sustainable Products Regulation (ESPR), Extended Producer Responsibility (EPR), and Waste Shipment Regulation (WSR). Industry stalwarts, including YES President Mr. Rajat Grover and Ex-President Mr. Raman Chhabra, joined the assembly to express a firm commitment to transitioning Panipat’s MSMEs into globally competitive, sustainable entities.
The workshop was graced by an elite panel of dignitaries, including Mr. P. Shyam Sundar, Director of the Bureau of Energy Efficiency (BEE); Mr. Vikas Jangra, Joint Director of the Haryana MSME Department; Ms. Sonica Chabra, Assistant General Manager of the Small Industries Development Bank of India (SIDBI); Mr. Peter Lund Thomsen, Professor at Copenhagen Business School; Ms. Uzma, Assistant Professor at Copenhagen Business School; and Ms. Devyani Hari, Senior Director at the Center for Responsible Business. Their collective presence underscored the robust institutional framework available to support MSMEs through this complex transition. The proceedings concluded with a vote of thanks from Mr. Abhishek Naga, Deputy General Manager of FMC, who reaffirmed the organization’s dedication to the textile ecosystem’s compliance journey.
This initiative, powered by the EU SWITCH-Asia Programme, addresses the rising pressure on India’s textile and apparel sector to demonstrate environmental responsibility. By focusing on capacity building and policy dialogue, the Green Threads Project ensures that clusters like Panipat and Amroha are not sidelined by the global shift toward green manufacturing. Since its inception in 2005, the Foundation for MSME Clusters has impacted over 300 clusters and 100,000 units, operating as a Nodal Agency for the Ministries of MSMEs and Rural Development. This latest intervention reinforces FMC’s long-standing mission to bridge the gap between local production and global standards, ensuring long-term resilience through sustainable business models.

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