DR Ambedkar IAS Academy

Green Growth Equity Fund

What is the fund about?

  • It aims to leverage private sector investment from the City of London to invest in Green Infrastructure Projects in India.
  • Both Governments reaffirmed their commitment to anchor invest up to £120 million each (i.e. totally £ 240 million) in the Joint Fund which will be established under the NIIF framework.
  • It is part of the early market engagement.
  • To begin with, the fund aims to raise around £500 million, with the potential to unlock much more in future.
  • The two Finance Ministers announced that initial investments will focus on India’s rapidly growing green energy and renewable market
  • And also a Fund Manager is expected to be selected in the next few months.
  • Progress will be accelerated through early market engagement via the publication of a blueprint, with the aim to identify additional and complementary sectors for fund investments.
  • The Fund will invest in mid to large-sized companies in the green infrastructure space in India.

What are the governing principles for the Fund?

  • Developmental (i.e. for the purpose of inclusive economic growth)
  • Sustainable (i.e. commercially viable)..
  • Replicable (i.e. attract investors to successive funds).
  • Leverageable, attracting both Indian, UK based and global capital into the fund as well as into investee companies/projects.
  • Governed in line with best practice.

What are the areas where fund will be utilised?

  • The Fund will target gross returns in the 14-16% INR range, investing primarily in the following sectors.
  • Renewable energy.
  • Energy distribution/transmission.
  • Clean transportation, Water treatment, Waste management.
  • Any other fledgling sub-sectors/ themes in the clean energy/environment space like energy storage/ fuel cells/ etc.

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