Section 4 in Energy Conservation (Venture Capital Fund for Energy Efficiency) Rules, 2017
4. Investment pattern of the fund.
(1)The fund shall invest in the form of equity but a single investment by the fund shall not exceed rupees two crore.(2)The fund shall provide last mile equity support to specific energy efficiency projects, limited to a maximum of fifteen per cent of total equity required, through special purpose vehicle or rupees two crore, whichever is less.(3)The fund shall not invest in projects of invested entities or special purpose vehicle of invested entities.(4)Each project shall meet the following criteria, namely:-(a)seek to achieve demonstrable energy savings and mitigating emissions of greenhouse gases and project sponsors or participants must offer a viable method to monitor and verify the same;(b)be a new project but shall not takeover of an existing project; and(c)use viable technologies and to be developed after energy audit or feasibility studies.(5)The period of investment of the fund shall be up to five years, with the option of early exit.(6)In case of successful completion of the project prior to five years of investment, Venture Capital Fund for Energy Efficiency may exit at the discretion of its Board of Trustees.(7)The fund may opt for the exit through the following exit routes, but not limited to: -(a)repurchase by the invested entities or promoters;(b)strategic sale- mergers and acquisition; and(c)initial public offering, India, foreign capital markets.
