Partial Risk Guarantee Fund

The Partial Risk Guarantee Fund, provided under Framework for Energy Efficient Economic Development of the National Mission for Enhanced Energy Efficiency, is a risk sharing mechanism, lowering the risk to the lender by substituting part of the risk of the borrower through granting guarantees and ensuring repayment of part of the loan upon a default event.

• Framework for Energy Efficient Economic Development seeks to develop fiscal instruments to promote energy efficiency including innovative fiscal instruments and policy measures. The Partial Risk Guarantee Fund seeks to directly support financing of energy-efficiency projects by: • Addressing credit risk and barriers to structuring the transactions involved in financing energy-efficiency projects and • Engaging commercial financial institutions and building their capacity to finance energy-efficiency projects on a commercially sustainable basis.