The Cabinet Committee on Economic Affairs has approved the proposal of the Ministry of Finance to amend the following guidelines for appraisal/approval of projects/schemes eligible for financing under the National Clean Energy Funds (NCEF):

i. Amendment in the “guidelines for appraisal and approval of projects to be financed from the National Clean Energy Funds (NCEF) to enable financing of schemes / programmes of the Ministry of New and Renewable Energy (MNRE) already appraised through SFC/EFC channels if balances are available with the NCEF after financing projects are approved by Inter Ministerial group. This will be done with the approval of the Finance Minister.

ii. In pursuance of the above amendment, two programmes of the MNRE namely Grid Interactive and Distributed Renewable Power and Research Design, Development in Renewable Energy will be financed from NCEF in 2013-14.

By these amendments of the NCEF guidelines, existing appraised and approved schemes / programmes for the new and renewable energy sector with objectives and purposes consistent with the purpose laid out in the Act for levying clean energy cess, are also made eligible for financing from the NCEF. As a consequence, financial resources with NCEF will be unlocked and made available for financing programmes / schemes in new and renewable energy sector. Fiscal resources freed up in the process can then be redeployed for other social sector programmes.

Clean Energy Fund financing expansion permits already-appraised renewable energy programmes to access unallocated fund balances subject to ministerial approval. Amendment permits financing from the National Clean Energy Fund of schemes and programmes in the new and renewable energy sector that have been appraised through SFC/EFC channels where Fund balances remain after Inter Ministerial Group approvals, subject to Finance Minister approval; two specified renewable energy programmes were selected for funding, enabling unlocking of Fund resources for sector programmes and redeployment of freed fiscal resources to other social sector programmes.