The objectives of the Financing Energy Efficiency at MSMEs Project is to increase demand for energy efficiency investments in target micro, small and medium enterprise clusters and to build their capacity to access commercial finance. The Project Development Objective supports the global environmental agenda of stabilizing atmospheric concentrations of greenhouse gases (GHG) through an increase in Energy Efficiency investments and resulting energy savings. The Government of India requested extension from December 31, 2014 to December 30, 2016. This is the first extension proposed for the project. This extension is necessary to complete the activities proposed to be funded by the project savings and to fully achieve the development objective. The MSME units are increasingly gaining confidence in implementing the EE measures and moving for higher investments. This situation is expected to further improve as the industry downturn reverses. While the design of larger EEIs are prepared as part of IGDPR preparation, the investments are deferred, though the MSMEs are committed to invest on these measures at a later date. Given the improving confidence levels in SMEs, the extension would further give MSMEs more time for EEIs. In addition, the restructuring is proposing to use part of the project savings to create a revolving fund as additional incentive for larger EE investments. Setting up the revolving fund and facilitating higher level of EEI would require additional time.