The committee of financial institutions, empanelled by AP State Energy Conservation Mission (APSECM), will enter into a memorandum of understanding (MoU) with the Bureau of Energy Efficiency for facilitating financing of energy-efficiency projects in the state under Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) scheme, said secretary for energy Srikant Nagulapalli.

Addressing a rally while inaugurating energy conservation week, Srikant said the government has decided to encourage energy-efficiency in all key energy-intensive sectors, particularly industries, buildings and agriculture. “The APSECM had constituted a committee of eight banks and three non-banking financial companies for facilitating financing of energy-efficiency projects in the state under PRGFEE. The BEE has institutionalised the PRGFEE that provides banks and NBFCs with a partial coverage of risk involved in extending loans to energy-efficiency projects. This would guarantee 50% of loan amount or Rs 10 crore per project with an objective of scaling up energy-efficiency investments in Andhra Pradesh. The APSECM would invite tenders for selecting an agency to supply IoT-enabled power monitoring devices to MSMEs that would help promote energy-efficiency in industries. The device gives real-time information on electricity voltage fluctuations that would help the MSME’s owner take immediate steps to save energy and ensure safety of machines,” said Srikant.

He further said the government is spending around Rs 42,000 crore for purchasing power from various sources.