The Bureau of Energy Efficiency (“BEE”) in a Notice dated August 24, 2018, has invited applications from various stakeholders such as large industries (including SPV and JVs of Industries), SMEs, ECO’s, Municipalities, Discoms etc. willing to seek financing for implementing Energy Efficiency projects in India.
BEE has taken up several initiatives to strengthen the market for energy efficiency including innovative mechanisms to scale up financing of energy efficiency projects in India.
With the objective of serving the twin interests of helping financial institutions actively engage with industries, large commercial establishments, project implementation agencies and to provide funds for energy efficiency projects across the country, BEE has created two financial instruments:
- Partial Risk Guarantee Fund for Energy Efficiency (“PRGFEE”)
- Venture Capital Fund for Energy Efficiency
BEE has made the First Call inviting willingness from various stakeholders to seek financing for implementing Energy Efficiency projects in India under PRGFEE:
- A loan amount of upto Rs. 200 Crore is allowed. Stakeholders who are willing to finance their Energy Efficiency Projects can apply for a loan from PRGFEE.
- A Guarantee of upto 50% of loan amount or Rs. 10 Crore per project, whichever is less, is provided to the borrower.
- Women Entrepreneurs have been provided with special incentives like partial relaxation in Guarantee fee. Please visitbeeindia.gov.in/content/prgfee for detailed incentives on reimbursement of guarantee fee, partial reimbursement of techno-economic viability study.
- The Notice specifies the minimum eligibility criteria required for Potential Borrowers as well as projects in order to seek finance under this initiative.
- Any applicant willing to take the financial assistance for an Energy Efficiency project will have to furnish details as per the prescribed format in Annexure-I of this notice.
Source: Bureau of Energy Efficiency