VIJAYAWADA: In what could give a fillip to energy efficiency projects by private sector industries, four major banks — Bank of India, Central Bank, NABARD and HDFC Bank — have agreed to be part of a committee of financial institutions to be constituted by the AP State Energy Conservation Mission (APSECM) to evaluate the projects for facilitating financing.
The committee will be constituted as part of the Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) scheme institutionalised by the Bureau of Energy Efficiency (BEE), a statutory body under the Union Ministry of Power.
According to APSECM officials, private sector industries in AP can avail bank finance to take up energy efficiency projects in different sectors including buildings, large industries, small and medium enterprises sector. A total of Rs 312 crore has been earmarked by the BEE at national-level for the scheme.
“The APSECM, the nodal agency for the implementation of the scheme, will constitute a committee of financial institutions with banks and non-banking financial companies as per the guidelines of the BEE for effective evaluation of energy efficiency projects to facilitate financing. The APSECM has already made consultations with seven nationalised banks and four major banks have given their consent so far for the same,” the officials said in a statement on Sunday.
Under the scheme, energy efficiency projects will be provided loan facility up to Rs 10 crore through BEE-approved Energy Service Companies (ESCOs), which is expected to help scale up energy efficiency investments in the State.