According to reports, the Indian Fund for Sustainable Energy (Infuse) at the Centre for Innovation, Incubation and Entrepreneurship of the Indian Institute of Management, Ahmedabad, is to launch a $25-million fund.
This fund will invest in entrepreneurial solutions across the cleantech vertical. The fund has International Finance Corporation (IFC) as an investor, with a commitment of up to 20 per cent of the fund size.
Infuse is backed by BP Ventures, the Union ministry of new and renewable energy and the Technology Development Board.
According to IFC, India is currently the third largest emitter of carbon dioxide and by 2030, its share of global emissions is expected to increase 60 per cent, the largest from any nation. The idea is to shift from the fossil fuel-centric generation and old technologies to cleaner ones.
Despite the presence of affordable, globally proven technologies, there exists a gap in funding for early-stage cleantech companies in India, with no major venture capital fund actively investing in these on an ongoing basis, says IFC.