Under NMEEE, BEE has institutionalized PRGFEE for addressing the debt related issues in financing EE projects. PRGFEE is a risk sharing mechanism to provide Participating financial institutions (PFIs) with a partial coverage of risk involved in extending loans for EE projects. PRGFEE guarantees 50% of loan amount or Rs. 10 crore per projects, whichever is less. PRGFEE support has been provided to government buildings, private buildings (commercial or multi-storey residential buildings), municipalities, SMEs and industries. This guarantee is extended to financial institutions which will extend loans to ESCOs for implementing EE projects.
The Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) is risk sharing mechanism to provide PFIs with a partial coverage of risk involved in extending loans for energy efficiency projects. The guarantee provided by the fund will directly support financing of energy efficiency projects by:
Addressing credit risk and barriers to structuring the transactions involved in financing energy efficiency projects.
Engaging commercial financial institutions and building their capacity to finance energy efficiency projects on a commercially sustainable basis
A Financial Institution empanelled as a Participating Financial Institution (PFI) with the BEE will be eligible to participate under PRGFEE. Under PRGFEE, the PFI can take guarantee from the IA or through its designee before disbursement of loan to the borrower. The IA shall be Public Sector Financial Institution or a consortium of entities including a Public Sector Financial Institution, selected by BEE for implementing all the activities under PRGFEE.
Unless otherwise specified by BEE, the PRGFEE shall be operational till the fund corpus allocated by GOI for the same, is exhausted or for a total of 10 complete years from the date of commencement of the program whichever is earlier.
By mid 2019 five FIs have been empanelled under PRGFEE which are Andhra Bank, Yes Bank, Tata Cleantech Capital Ltd.,IDFC Bank and IndusInd Bank
312 CRORE INR for whole period
- Multiple end-uses