Tamil Nadu government on Monday issued orders to set up Tamil Nadu Green Climate Fund (TNGCF) with ₹1,000 crore. This is one of a kind funds in the country and has been set up in accordance with an announcement made during the presentation of the State Budget.
The fund will support various climate change initiatives, mitigation and greening projects. It will mobilize necessary resources from the government, development finance institutions and international climate fund.
The fund will be managed by the Tamil Nadu Infrastructure Fund Management Corporation with fund size of ₹1,000 crore with a greenshoe option for another ₹1,000 crore.
The initial commitment sponsoring the TNGCF from the government will be ₹100 crore.
The fund will be created through various financial instruments, including equity, equity-linked instruments, debentures and convertible instruments with a tenure of 10 years, extendable by up to 2 years, says an order.
The list of investments includes climate-friendly products, pollution control technologies, renewal/green energy, carbon/greenhouse gas reduction technologies and projects, forest development, electric vehicle/hybrid and associated infrastructure and waste management. The fund is to be set up as Category I (Social Venture Funder) under the SEBI Alternative Investment Fund Regulations, 2012, the order said.
Tamil Nadu Environment Secretary Supriya Sahu in a tweet said, “The new year begins with a bang as Tamil Nadu government issues orders for setting up the Green Climate Fund with the fund size of ₹1,000 crore with greenshoe option of another ₹1,000 crore as announced by Chief Minister M.K. Stalin. Huge step for collaborations in climate projects.”