SBI Launches CHAKRA for Financing Sunrise Sectors
The State Bank of India (SBI), the largest lender in the country, has taken a significant step towards fostering economic growth by launching CHAKRA, a Centre of Excellence (CoE). This initiative is focused on financing eight sunrise sectors that are crucial for India's future, including renewable energy, advanced cell chemistry, and electric mobility. Other sectors targeted include data centre infrastructure, green hydrogen, semiconductors, and decarbonisation.
With an ambitious investment requirement of Rs 100 lakh crore over the next five years, CHAKRA aims to drive innovation and sustainability in these emerging sectors. C S Setty, the chairman of SBI, highlighted that India’s growth will be anchored in advanced manufacturing and innovative solutions. By introducing CHAKRA, SBI is enhancing its capability to understand and design specialized financing solutions for these sectors.
One of the key objectives of CHAKRA is to facilitate responsible capital flow into these capital-intensive industries. SBI plans to strengthen its risk assessment capabilities and develop innovative financing structures that align with evolving business models. As industries scale up their operations, they will also require debt capital, and SBI intends to play a significant role in providing this financial support.
During the launch event, M Nagaraju, Secretary of the Department of Financial Services, encouraged state-run lenders to focus on multiple sunrise sectors instead of just one. This approach would help diversify risks and foster a more resilient financial ecosystem. The cooperation between SBI and various stakeholders, including development finance institutions and multilateral agencies, is expected to enhance project financing capabilities.
SBI has already signed Memorandums of Understanding (MoUs) with nearly 21 financing institutions. This collaboration will allow project finance teams from these entities to work alongside SBI's CHAKRA, facilitating capacity building and co-financing opportunities. Notably, Japanese banks like MUFG and Sumitomo Mitsui Banking Corporation are key partners, contributing foreign capital and expertise to the initiative.
Through CHAKRA, SBI is not only aiming to build strong capabilities but also to support innovation-focused enterprises. By improving the flow of capital to these emerging sectors, SBI seeks to drive India's sustainable and technology-led future. This initiative builds on the bank’s previous Centre of Excellence for Micro, Small, and Medium Enterprises (MSMEs), further demonstrating its commitment to fostering economic growth.
