Panel to facilitate funding to energy-efficiency projects
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It will do technical appraisal and advocate the viable ones to monetary establishments
The Energy Department has arrange a committee comprising the officers of Union Bank of India, State Bank of India, Punjab National Bank, YES Bank, Indian Overseas Bank, Central Bank Of India, HDFC Bank, NABARD, Power Finance Corporation and IIFL to facilitate funding to the energy-efficiency (EE) projects.
These Financial Institutions (FIs) will get the advantages of Partial Risk Guarantee Funding for Energy Efficiency (PRGFEE) scheme on being empaneled with the Bureau of Energy Efficiency (BEE), in accordance to a launch by State Energy Conservation Mission (SECM) CEO A. Chandra Sekhar Reddy, who has been appointed the committee convener. He stated underneath the PRGFEE scheme, the BEE will present partial assure to mortgage quantity for EE projects carried out by way of the BEE- empanelled vitality service firms.
The committee will suggest coverage initiatives for growing EE financing and improvement of EE market within the State.
Policy initiatives
The SECM will invite EE proposals in numerous sectors similar to industries (giant or small), buildings and agriculture, do technical appraisal of the projects and can advocate the viable ones amongst them to the monetary establishments for funding.
The SECM can even pave the way in which for signing of MoUs with the BEE, which leads to venture financing underneath the PRGFEE.
In the assembly, Energy Secretary N. Srikant stated the BEE has formulated a threat sharing mechanism to present monetary establishments with a partial protection of threat concerned in extending loans for vitality environment friendly projects. It (BEE) has allotted round ₹312 crore for the PRGFEE on the nationwide stage.
Loan assure
Under the PRGFEE scheme, the BEE will present ensures up to 50% of the mortgage or ₹10 crore per venture, whichever is much less, to the monetary establishments which supply loans to industries or others to take up the EE projects within the State.
In case of default, the fund will cowl the primary loss topic to most of 10% of the full assured quantity and canopy the remaining default (excellent principal) quantity on pari-passu (equal footing) foundation up to the utmost assured quantity.
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