Private sector lender Yes Bank today signed a pact with Bureau of Energy Efficiency to become the participating financial institution (PFI) to avail risk guarantee under the partial risk guarantee fund for energy efficiency.
The partial risk guarantee fund for energy efficiency (PRGFEE) is a risk sharing mechanism that provides Yes Bank with a partial coverage of risk involved in extending loans to energy efficiency projects with an objective of scaling-up Energy Efficiency investments in India.
"This MoU is a formal agreement between Yes Bank and BEE (Bureau of Energy Efficiency), a statutory body under Ministry of Power, Government of India, to channelize bank finance for energy efficiency projects through BEE approved Energy Services Companies (ESCOs)," a press statement said.
The PRGFEE is an innovative financial instrument which uses the public resources to channelise private sector finance towards promoting of energy efficiency in different sectors of the economy, including MSMEs, buildings and municipalities.
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