Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE)
To ease credit risk of Financial institutions (banks/NBFCs) BEE has institutionalized PRGFEE, which provides a partial coverage of risk involved in extending loans for Energy Efficiency (EE) projects. PRGFEE guarantees upto 50% of loan amount or Rs. 10 crore per project, 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 participating financial institutions (PFIs) which will extend loans to ESCOs for implementing EE projects.
PRGFEE Rules were notified by Ministry of Power in May 2016. Operations Manual for PRGFEE was approved by Supervisory Committee and is readily available for stakeholders. Till date, five FIs have been empanelled under PRGFEE which are Andhra Bank, Yes Bank, Tata Cleantech Capital Ltd., IDFC First Bank and IndusInd Bank.