Page 284 - Low Carbon Development in China and India
P. 284
with more environment friendly ones under the National Mission on Strategic
Knowledge for Climate Change (NMSKCC).
• Projects relating to creation of power evacuation infrastructure for renewables.
Source: Compiled from MoF (2011)
The coal cess goes to the National Clean Energy Fund, which has a 3.2
fund amounting to INR 17,000 crore (approx. USD 2.833 billion) in its
kitty. By September 2014, 46 clean energy projects worth INR 16,511.43
crore (approx. USD 2.752 billion) were recommended for funding
out of the NCEF (MoF 2015). Also, so far, the projects that have been
approved or are under consideration to be funded under the NCEF
are routine in nature, and should have been funded by the ministries
through their regular schemes. While the objectives of NCEF seem to
be in line with the critical needs of the clean energy sector in India,
there is no guidance for the overall vision and the strategy that should
be employed to realize these (NIPFP 2013). There is also a need to
both substantially augment the resources made available for energy
related R&D and allocate these strategically, according to its needs and
priorities.
Fiscally Supported Guarantee Schemes
The Government of India adopted the National Action Plan on Climate
Change in 2008 that consisted of several targets on climate change
issues and addressed the urgent and critical concerns of the country
through a directional shift in development patterns. The Partial
Risk Guarantee Fund (PRGF) has been proposed under the National
Mission on Enhanced Energy Efficiency (NMEEE) to cover specified
technology and the associated commercial risks for new technologies
in energy efficiency and renewable energy that are not usually priced
by commercial banks. To help extend the reach of private financing by
mitigating perceived risk and encourage private sector involvement in
these sectors, this facility will act as a risk-sharing mechanism that will
provide commercial banks with partial coverage of their risk exposure,
thereby helping investors get lower cost debt. The Government of
India has approved around INR 312 crore (approx. USD 52 million) for
PRGF for Energy Efficiency (PRGFEE).
The fund would be available only in case of default, that is, it will
be paid out to participating banks in the event of a loss or default,
as specified in the structure of the PRGF mechanism. The mechanism
Chapter 2 Innovative Financing for Low Carbon Development 249
Knowledge for Climate Change (NMSKCC).
• Projects relating to creation of power evacuation infrastructure for renewables.
Source: Compiled from MoF (2011)
The coal cess goes to the National Clean Energy Fund, which has a 3.2
fund amounting to INR 17,000 crore (approx. USD 2.833 billion) in its
kitty. By September 2014, 46 clean energy projects worth INR 16,511.43
crore (approx. USD 2.752 billion) were recommended for funding
out of the NCEF (MoF 2015). Also, so far, the projects that have been
approved or are under consideration to be funded under the NCEF
are routine in nature, and should have been funded by the ministries
through their regular schemes. While the objectives of NCEF seem to
be in line with the critical needs of the clean energy sector in India,
there is no guidance for the overall vision and the strategy that should
be employed to realize these (NIPFP 2013). There is also a need to
both substantially augment the resources made available for energy
related R&D and allocate these strategically, according to its needs and
priorities.
Fiscally Supported Guarantee Schemes
The Government of India adopted the National Action Plan on Climate
Change in 2008 that consisted of several targets on climate change
issues and addressed the urgent and critical concerns of the country
through a directional shift in development patterns. The Partial
Risk Guarantee Fund (PRGF) has been proposed under the National
Mission on Enhanced Energy Efficiency (NMEEE) to cover specified
technology and the associated commercial risks for new technologies
in energy efficiency and renewable energy that are not usually priced
by commercial banks. To help extend the reach of private financing by
mitigating perceived risk and encourage private sector involvement in
these sectors, this facility will act as a risk-sharing mechanism that will
provide commercial banks with partial coverage of their risk exposure,
thereby helping investors get lower cost debt. The Government of
India has approved around INR 312 crore (approx. USD 52 million) for
PRGF for Energy Efficiency (PRGFEE).
The fund would be available only in case of default, that is, it will
be paid out to participating banks in the event of a loss or default,
as specified in the structure of the PRGF mechanism. The mechanism
Chapter 2 Innovative Financing for Low Carbon Development 249
