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In a significant move to align banking with India’s future economic priorities, the State Bank of India (SBI) has launched ‘CHAKRA’ – Centre of Excellence (CoE). The initiative is designed to support financing for sunrise sectors that are expected to play a decisive role in India’s transition toward a technology-driven, sustainable, and globally competitive economy.

This step signals a shift in institutional finance from traditional asset-heavy industries toward innovation-led and climate-aligned growth sectors.

What is CHAKRA?

CHAKRA (Centre of Excellence) is a knowledge-driven and advisory platform established by SBI to strengthen the financing ecosystem for emerging sectors that are:

• Technology-intensive
• Sustainability-oriented
• Capital-intensive but future-critical

Rather than functioning only as a funding desk, CHAKRA will operate as a strategic think-and-act hub combining:

• Sectoral research
• Risk assessment models
• Project structuring expertise
• Advisory support

It will assist SBI’s Project Finance & Structuring teams while also contributing to the broader Indian financial ecosystem.

Eight Focus Sunrise Sectors

CHAKRA will concentrate on sectors that are expected to shape India’s industrial and environmental trajectory:

1. Renewable Energy
2. Data Centres
3. E-Mobility & Charging Infrastructure
4. Advanced Cell Chemistry (ACC) / Battery Storage
5. Semiconductors
6. Green Hydrogen & Green Ammonia
7. Decarbonisation Technologies
8. Smart Infrastructure

These sectors are interconnected and critical for energy transition, digital transformation, and industrial competitiveness.

Investment Potential

By 2030, these eight sectors are projected to unlock cumulative capital expenditure exceeding ?100 lakh crore.

CHAKRA aims to:

• Improve bankability of large-scale projects
• De-risk emerging technologies through better assessment frameworks
• Mobilise blended finance and long-term capital
• Enable India’s participation in global value chains (GVCs)

Role and Functions of CHAKRA

1. Knowledge & Technology Hub

• Develops expertise in new technologies, AI integration, and sustainability metrics
• Tracks global best practices in project financing for advanced sectors

2. Advisory & Structuring Support

• Helps design innovative financial instruments
• Supports complex project structuring in capital-heavy sectors like semiconductors and hydrogen

3. Ecosystem Coordination

CHAKRA will actively collaborate with:

• Policymakers and regulators
• Development Finance Institutions (DFIs)
• Multilateral agencies
• Banks and NBFCs
• Industry bodies and corporates
• Start-ups and academia
• Policy think tanks

This multi-stakeholder approach aims to create a robust manufacturing and innovation ecosystem.

Strategic Significance

• Supporting India’s Energy Transition: By backing renewables, hydrogen, storage, and decarbonisation, CHAKRA aligns banking flows with India’s climate commitments and Net Zero pathway.
• Strengthening Technological Sovereignty: Financing for semiconductors, batteries, and data centres reduces import dependence and enhances strategic autonomy.
• Enabling Digital & Infrastructure Growth: Smart infrastructure and data centres are essential for Digital India, AI adoption, and Industry 4.0.
• Financial Sector Innovation: The CoE model marks a transition from collateral-based lending to knowledge-based financing, especially for technology-driven sectors where risks are complex but long-term returns are high.