We run a dyeing unit. Which of our processes does SIDBI's green loan treat as moderate risk, and how does it check our effluent plant?

Pre-dyeing, washing and heat setting, bleaching and mercerising, dyeing and printing, and finishing on stenters are Category B. Spinning, knitting, sewing, twisting and weaving are low-risk Category C. For Category B, SIDBI checks your effluent or common treatment plant, and can exclude or defer a loan if capacity is short.

Category B and Category C

Dyeing and printing is called one of the most polluting textile steps, with coloured effluent, high COD and BOD, toxic chemicals and heat stress for workers.

• Category B: pre-dyeing, washing and heat setting, bleaching and mercerising, dyeing and printing, finishing on stenters and heat setting.
• Category C: spinning, stitching including knitting, sewing, texturising and twisting, and weaving.

The effluent plant check

During due diligence the loan officer and an environment and social expert will:

• Verify the operating status, performance and compliance of the effluent plant or common effluent treatment plant you are connected to.
• Examine whether the extra water, organic or colour load from your project could exceed that plant's capacity or the limits of the receiving environment.
• Require effluent minimisation, in-house pre-treatment and source-level pollution reduction in your site plan.

When it can stop a loan

If your effluent is non-compliant, the projected extra load would exceed treatment or disposal capacity, or compliance cannot be assured even after mitigation, the subproject is excluded from the programme or phased and deferred until adequate treatment capacity and compliance are shown. Every Category B borrower must keep wastewater within the prescribed limits.

Prepare before you apply

• Your consent to operate and latest discharge test results.
• The connection or agreement with your common effluent treatment plant, if any.
• Water use and effluent volume per month.

What Senseible does here

Senseible's green loan check shows how ready your bills and records are for a green loan, and its finance application tool helps you put them in order. It does not approve loans or speak for SIDBI.

• SIDBI sector checks for textiles, foundries and steel
• SIDBI environmental due diligence checklist
• Green loan check

Sources: SIDBI, ESIA and ESMP for direct financing, textile sector (updated 8 June 2026)

Last reviewed 2026-11-04.