Home > News > India Ireda Energy Efficiency Fund - India IEEF
India Ireda Energy Efficiency Fund - India IEEF
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Name |
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India Ireda Energy Efficiency Fund |
Status |
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Active until end of 2003 |
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Funding Mechanism |
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Loan fund |
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Duration |
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1998-2003 |
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Objectives |
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Sponsors |
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IDA & IBRD (for loan), GEF (for technical assistance) and IREDA |
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Eligible Sectors |
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Potential borrowers include energy end-users, ESCOs, equipment manufacturers and vendors, reforming state electricity bonds and private utilities. |
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Eligible Projects/Technologies |
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End-User Efficiency, ESCO and DSM projects |
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Fund Endowment |
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Own funds and IDA/IBRD |
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Terms |
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-Funding Instruments |
Term loan only |
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-Interest Rates |
12.5 - 14% p.a. |
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-Payback |
Up to 10 years, with up to 3 years grace |
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-Size |
US$ 20,000 – 14 million |
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-Collateral |
Borrowers are required to provide collateral like extension of mortgage of their existing plant & machinery. |
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-Share of loan in project cost |
70-75 % |
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-Loan criteria |
Only with borrowing capacity, debt-equity ration < 3:1 after loan, minimum internal rate of return, good track record. |
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Comments |
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Starting in 1998/99 IREDA diversified into financing energy efficiency projects, using its own funds, which the World Bank also supplemented. A line of credit from the World Bank was received to assist IREDA to promote and finance the delivery of energy efficiency services and equipment, implementation of DSM and the development of ESCOs. IREDA makes funding available to assist prospective energy investors in arriving at cost-effective technical solutions and workable business arrangements in order to build up a sustainable investment pipeline that IREDA as well as commercial banking institutions can finance. |
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Sources |
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World Bank |
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| Contact Information |
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Managing Director, Dr.V.Bakthavatsalam |
Deputy Manager, Shanker Lal shanker_ireda@rediffmail.com |
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