Green Growth Equity Fund (GGEF) in India established in 2018, is focused on identifying, investing and supporting growth in zero carbon and low carbon energy solutions in the country.GGEF already includes investments from the Government of India, through the National Investment and Infrastructure Fund (NIIF), and the UK Government, through the Department for International Development (DfID). It expects to reach about $700 million commitment at final close and grow further through leveraged capital options.
The GGEF is managed by EverSource Capital, a joint venture between Lightsource bp and Everstone Capital, and has invested in businesses like Ayana Renewable Power, Radiance Renewables, GreenCell Mobility and EverEnviro.
What is the fund about?
1.It aims to leverage private sector investment from the City of London to invest in Green Infrastructure Projects in India.
2.Both Governments reaffirmed their commitment to anchor invest up to £120 million each (i.e. totally £ 240 million) in the Joint Fund which will be established under the NIIF framework.
3.It is part of the early market engagement.
4.To begin with, the fund aims to raise around £500 million, with the potential to unlock much more in future.
5.The two Finance Ministers announced that initial investments will focus on India’s rapidly growing green energy and renewable market
6.And also a Fund Manager is expected to be selected in the next few months.
7.Progress will be accelerated through early market engagement via the publication of a blueprint, with the aim to identify additional and complementary sectors for fund investments.
8.The Fund will invest in mid to large-sized companies in the green infrastructure space in India.
What are the governing principles for the Fund?
1.Developmental (i.e. for the purpose of inclusive economic growth)
2.Sustainable (i.e. commercially viable)..
3.Replicable (i.e. attract investors to successive funds).
4.Leverageable, attracting both Indian, UK based and global capital into the fund as well as into investee companies/projects.
5.Governed in line with best practice.
What are the areas where fund will be utilised?
1.The Fund will target gross returns in the 14-16% INR range, investing primarily in the following sectors.
4.Clean transportation, Water treatment, Waste management.
5.Any other fledgling sub-sectors/ themes in the clean energy/environment space like energy storage/ fuel cells/ etc.