Section 15 in Energy Conservation (Venture Capital Fund for Energy Efficiency) Rules, 2017
15. Role and responsibility of the Fund Manager.
(1)A Public Financial Institution registered under section 4A of the Companies Act,1956 (1 of 1956), shall be selected as the fund Manager and shall be primarily responsible for making investment on behalf of the Venture Capital Fund for Energy Efficiency in energy efficiency projects as envisaged under these rules including the following; namely:-(a)create a detailed investment strategy based on objectives as specified by the Bureau or Trust, such as segmental market size, impact on energy efficiency, types of technologies, financial returns, risks and other objectives;(b)develop a pipeline of investment options or deals;(c)screen investment opportunities;(d)establish term sheets for investments;(e)due-diligence of investment opportunities-(i)business plan, business space;(ii)technical matters relating to technology;(iii)financial and accounting matters;(iv)legal issues relating to the fund.(2)The appointed Fund Manager shall be required to make decisions on investments, exit strategies, management of liquidity and participation in the management of investee entities and any other matter with respect to the investment strategy approved by Venture Capital Fund for Energy Efficiency Trust.(3)Reviewing operating results and compliance reports of the invested companies and ensuring course corrections when needed.(4)Deposit the dividend received on investments back into Venture Capital Fund for Energy Efficiency Trust account which shall further be used to meet the administrative expenses relating to the Venture Capital Fund for Energy Efficiency.(5)The Fund Manager shall ensure that each investment meets pre-agreed criteria.(6)The Fund Manager shall assess and review the progress reports and statement of accounts provided by the companies on utilisation of the fund and in case of any deviation from the agreement, accordingly bring them to the notice of the Board of Trustees and shall take suitable actions to safeguard the investments and the invested projects.(7)The staff of Fund Manager shall, during the examination of investment proposals, ensure complete independence from the appraisal of the project by other agencies and from the development of the project by the project developer.(8)The Fund Manager shall organise quarterly meeting of Venture Capital Fund for Energy Efficiency Trust, where progress reports, statement of accounts etc. shall be presented to the Board of Trustees for overall monitoring.(9)The Fund Manager shall prepare and publish an annual report setting out the accounts showing all the income and expenditure of the trust, including administrative expense, after taking approval from the Venture Capital Fund for Energy Efficiency trust.(10)The Venture Capital Fund for Energy Efficiency shall not consider any investment projects in which the organisation that is providing manpower for the Fund Manager is an investor, or is considering to be an investor.
