Private industries in Andhra Pradesh can now easily avail of bank finance from BEE to take up energy efficiency projects in different sectors
Private industries in Andhra Pradesh can now easily avail of bank finance to take up energy efficiency projects in different sectors, including buildings, large industries, and small and medium enterprises. The Bureau of Energy Efficiency (BEE), a statutory body of the Union Ministry of Power, has come forward to channelize the bank finance to the energy efficiency projects in various states under the Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) scheme.
The energy efficiency projects will be provided loan facility up to Rs 10 crore through BEE-approved energy service companies (ESCOs) under the scheme. This will help to scale up energy efficiency investments in AP for energy efficiency projects.
TNN reported that according to the officials, BEE has formulated a risk-sharing mechanism to provide financial institutions with partial coverage of risk involved in extending loans for energy-efficient projects. The BEE has allotted around Rs 312 crore for the PRGFEE at the national level. Under the scheme, the BEE will provide guarantees a maximum 50 percent of the loan or Rs 10 crore per project, whichever is less, to the financial institutions which offer loans to industries or others to take up energy efficiency projects in Andhra Pradesh.
In case of default, the fund will cover the first loss subject to a maximum of 10 percent of the total guaranteed amount and cover the remaining default (outstanding principal) amount on a pari-passu (equal footing) basis up to the maximum guaranteed amount.
AP State Energy Conservation Mission (APSECM) is the nodal agency to implement the PRGFEE scheme in Andhra Pradesh.
Recently, the central government had announced that it has ordered the release of Rs 3300 crore loan to the Andhra Pradesh power sector. The loan will fall under the second tranche of the Atmanirbhar Loan. The decision was announced by Union Minister for Power and New & Renewable Energy RK Singh during his meeting with Andhra Pradesh energy secretary Srikant Nagulapalli, AP Genco G Saiprasad in New Delhi. The power minister directed officials to release the amount to the state during the meeting.