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National Clean Energy Fund (NCEF)

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The National Clean Energy Fund (NCEF) is a fund created in 2010-11 using the carbon tax - clean energy cess - for funding research and innovative projects in clean energy technologies of public sector or private sector entities, upto the extent of 40% of the total project cost. Assistance is available as a loan or as a viability gap funding, as deemed fit by the Inter-Ministerial group, which decides on the merits of such projects.

The Fund is designed as a non lapsable fund under Public Accounts and with its secretariat in Plan Finance II Division, Department of Expenditure, Ministry of Finance.

Creation of NCEF was announced in the Union Budget 2010-11.

An Inter-Ministerial Group, chaired by the Finance Secretary in Ministry of Finance (and comprising of Secretaries of Departments of Expenditure and Revenue at Ministry of Finance, Principal Scientific Advisor to the Government of India, a representative of Planning Commission and a Representatives of Ministry sponsoring the proposal and other Ministries concerned with that specific proposal) recommends projects eligible for funding under NCEF. Upon recommendation by NCEF, the final approval is given by the Minister of the concerned nodal Ministry (which initially approved and decided to take the project submitted by the public or private entity to NCEF) if the project cost is below Rs. 150 Crore; by Minister of Finance and the Minister of the concerned nodal Ministry if the project cost is between Rs. 150 Crore and 300 crore; and by the Cabinet Committee on Economic Affairs if the project cost is above Rs. 300 Crore.

Usage of fund

Any project/scheme relating to Innovative methods to adopt to Clean Energy technology and Research & Development are eligible for funding under the NCEF. An indicative list of such projects is as follows:

Projects which are being funded by any other arm of the Government of India or have received grants from any other national/international body will be ineligible for applying/funding under NCEF. However, no project relating to basic/fundamental research are supported through NCEF.

Since June 2014 it has been decided that NCEF will also finance the schemes / programmes of Ministry of New and Renewable Energy which are already appraised through Standing Finance Committee (SFC)/ (Expenditure Finance Commission) EFC channels, if balances are available with the NCEF after financing projects approved by the Inter-Ministerial Group. This is done with only the approval of Finance Minister.


Details of projects recommended by NCEF are available on the site of Plan Finance II, Department of Expenditure, Ministry of Finance. As at the end of September 2014, NCEF has recommended projects worth Rs. 18577 Crore.

Financial Year Projects recommended by NCEF
(Project cost in Rs. Crore)
2011-12 573.05
2012-13 3276.11
2013-14 1477.65
2014-15 (uptil September 2014) 13250 (after certain sanctioned projects of previous years were downsized to include another project)

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