India and the UK have on April 4, 2017 decided to set up a 500 million pound fund. Both governments will be investing 240 million pounds to finance clean energy projects.
The fund will be set up as a sub fund of the INR 40,000 crore NIIF which was formed in 2015 to finance greenfield and brownfield projects.
India and the UK will be anchors of this clean fund. It is called
“Green Growth Equity Fund”.
India and the UK will invest 120 million pounds each and the remaining 260 million pounds comes from private investors.
The two governments have reinforced their commitment to invest 120m pounds each in the joint fund, at a joint statement issued following the 9th UK-India Economic and Financial Dialogue.
The fund will focus initial investments on India's rapidly transforming energy and renewable markets.
This fund will also identify future investments. In December 2015, the NIIF fund was set up for funding commercially viable brownfield, greenfield and stalled projects.
As government investment in the fund will be limited to 49 percent, private domestic and foreign investors can hold the 51% that remains.
These investors can invest in an umbrella fund or smaller sector/project specific funds within it.
The government had announced it will set up two sub funds under the NIIF namely a clean energy fund focused on renewable energy and another focusing on highway projects.
