Project Eligibility Under PRGFEE
(a) Each Eligible Project should meet the following criteria
Seek to achieve demonstrable energy savings and mitigation in emissions of greenhouse gases;
Propose a viable method to monitor and verify energy and greenhouse gas emission savings;
Be a new project, not refinancing existing projects or any outstanding obligations of the Eligible Borrower; and
Use viable technology and be developed with competent energy audit/feasibility studies;
Project must be implemented by BEE empanelled ESCO on performance contracting mode, where there is a defined agreement which link payment to certain level of energy savings.
(b) Besides, meeting the above mentioned eligibility criteria the project should also ensure that minimum 70% of the eligible loan amount should be towards the cost of the investments required for implementation of the EE project which shall include expenditure on purchase, erection and commissioning, installation or retrofit/ modification of the equipment etc. contributing to energy savings and 30% for others; or
the project can be a joint project of Renewable Energy and Energy efficiency with a component of 50% for the cost of the investments required for implementation of the EE project as above and 50% for RE and other costs.
(c) Loan amount below Rs. 5 Lakh will not be considered under PRGFEE
Projects not eligible under PRGFEE
i. any project in respect of which performance risks are additionally covered under a scheme operated or administered by deposit insurance and credit guarantee corporation or the Reserve Bank of India, to the extent they are so covered;
ii. any project in respect of which performance risks are additionally covered by Government or by any general insurer or any other person or association of persons carrying on the business of insurance, guarantee or indemnity, to the extent they are so covered;
iii. any project, which does not conform to, or is in any way inconsistent with, the provisions of any law, or with any directives or instructions issued by the Central Government or the Reserve Bank of India, which may, for the time being, be in force;
iv. any project proposal by energy service company which has not repaid any portion of the amount due to a PFI (under any other facility extended by PFI), for a guarantee invoked under PRGFEE, or under scheme mentioned under clause (a) or (b) or (c) above;
v. projects covering performance risks under any kind of State government or Central government beneficiary scheme; and
vi. the defaulters listed by Credit Information Bureau (India) Limited or Reserve Bank of India.
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