BEE seeks partnership from banks for offering SME Loans

The Bureau of Energy Efficiency (BEE) has proposed to extend loans for energy efficiency projects under Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE).

The bureau has appointed the consortium of RECPDCL-REC-EESL as implementing agency for PRGFEE to provide financial support to government buildings, municipalities, private buildings, commercial buildings, SMEs and industries.

PRGFEE is an innovative financing mechanism under Framework for Energy Efficient Economic Development (FEEED), which is one of the initiatives under National Mission for Enhanced Energy Efficiency. This fund has been constituted by BEE and the Ministry of Power.

In this context, BEE is inviting bids from commercial banks and non-banking companies registered with RBI under the category of non-deposit taking non-banking financial companies.

The government has approved around Rs 312 crores for PRGFEE. The guarantee provided by the fund will directly support financing of energy efficiency projects by addressing the risks and barriers faced and perceived by the financial institutions to financing ESCOs for implementing ESPC-based EE projects in the country.