PRSF Project

Objective

The International Bank for Reconstruction and Development ("World Bank"), as implementing agency of each of the Global Environment Facility("GEF") and the Clean Technology Fund ("CTF"), has provided support for a project titled "Partial Risk Sharing Facility for Energy Efficiency" ("PRSF"/Programme").

The objective of the Programme is to support the Government of India’s efforts to transform energy efficiency market in India by promoting increased level of investments in energy efficient projects, particularly through energy service performance contracting delivered through energy service companies ("ESCOs"). The Programme will support the loans granted by various PFIs and by SIDBI as lender (in such capacity, “SIDBI as Lender”), who are empanelled with the PEA Division to either ESCOs or the Host who are implementing energy saving projects, by providing risk coverage for repayment of such loans.

The Project has a total outlay of USD 43 million consisting of the “Partial Risk Sharing Facility for Energy Efficiency” component of USD 37 million and technical assistance component of USD 6 million.

The entire “Risk Sharing Facility” component of USD 37 million is managed by SIDBI, under which partial credit guarantees are provided to cover a share of default risk faced by Participating Financial Institutions (PFI) in extending loans to eligible EE projects implemented through ESCOs.

The technical assistance component of USD 6 million are managed by SIDBI and EESL, under which capacity building activities and other developmental/operational support for the project are provided.

Under the Programme, scheduled commercial banks and non-banking financial companies (NBFCs), registered with Reserve Bank of India ("RBI") would be eligible to express their interest for empanelment with the PEA Division for the Programme to participate as participating financial institutions ("PFIs").

For more details and documents on PRSF, please visit PRSF website: http://prsf.sidbi.in/