Tata Capital today said it would disburse around Rs 5,000 crore over five years for clean energy projects.
"We are looking to disburse nearly Rs 5,000 crore for clean energy projects in the next five years. This amount would be disbursed during the period from financial year 2012-13 to 2016-17," Tata Capital Managing Director and CEO Praveen P Kadle said.
The company has entered into an agreement with the Bureau of Energy Efficiency (BEE) for extending funds for energy efficiency initiatives.
On inking the MoU with BEE, Kadle said it is the "right step" towards promoting energy efficiency projects.
The energy efficiency market in the country is estimated to be worth Rs 74,000 crore.
Tata Capital would work closely with BEE on Energy Efficiency Financing Platform (EEFP) that aims to create a mechanism for enabling mainstream financing of energy efficiency projects.
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EEFP comes under the National Mission for Enhanced Energy Efficiency.
"Along with Tata Capital, BEE will be able to carry out collaborative activities to bring in more money for energy efficiency projects," BEE Director General Ajay Mathur said.
"Tata Capital's concerted focus on this area is a positive signal to market and private investors," he noted.
The MoU would provide a flexible framework under which collaborative activities and partnerships in the areas of utility-based Demand Side Management and Energy Conservation Building Code would be implemented.
Mathur pointed out that getting funds for energy efficiency face barriers many times, especially for new business models.
Kadle said Tata Capital would look at energy efficiency projects for entities in the Tata Group ecosystem including suppliers.
In November, Tata Capital and International Finance Corp announced a joint venture that would offer financing as well as advisory services to entities pursuing green initiatives.
"The JV - Tata Cleantech Capital Ltd - is expected to start functioning from April this year," Kadle said.
A leading financial services provider, Tata Capital caters to diverse areas including infrastructure and private equity.