Climate Policy Initiative (CPI) has launched the India PURE Finance Facility (IPFF) as one-of-its-kind initiatives for promoting productive use of renewable energy (PURE) in rural and semi-urban centres, and obscure areas of the country. Besides facilitating transition from fossil fuel-run processes and equipment, thereby resulting in abatement of emissions, these productive uses have a substantial potential to generate and support livelihoods, and foster social and economic growth. IPFF will channelize committed funds from a leading international philanthropy – IKEA Foundation – towards project preparation for select PURE projects to help catalyze long-term equity or debt financing from domestic and international financiers. CPI will coordinate the program as its Program Manager.
How it Works
Applications are evaluated by the IPFF team, and thereafter by an Advisory Committee.
After an application is approved, IPFF’s network of service providers is engaged to provide required project support.
The awardees procure services from the selected service provider; grant amount is transferred to service providers in pre-agreed milestones of task completion.
The completion of services helps awardees unlock finance.
Who Should Apply?
Entities operating in the PURE domain having capacity to generate livelihoods and in need of financial support like manufacturers, assemblers and distributors of PURE equipment/ appliances, service-oriented businesses (e.g. providing irrigation, cooling and milling as a service), PURE technology providers and specialised financiers engaged in end user financing in DRE segments. They could benefit from early-stage financing for project preparation services including:
- Financial advisory services
- Market assessment studies including sizing and demand estimation.
- Techno-economic feasibility studies (resource estimation, technology assessment etc.)
- Product development and testing
- Third party monitoring and verification of project performance
- Legal costs for legal structuring such as preparation of documentation relating to permitting, engineering, procurement & construction, operations & maintenance, debt financing, shareholder agreements, etc.
- Environmental and social impact assessment
The support extended by the facility helps accelerate the development of PURE businesses and projects
The applicant gets to access a wide array of empanelled service providers for various project preparation services.
The facility enables access to a wide range of capital from debt to equity, and from term loans to working capital finance.
The PURE entity becomes investment-ready for appropriate type of financing.