The Government of Tamil Nadu has set up first of its kind initiative in the country “Tamil Nadu Green Climate Fund” (TNGCF) for Rs. 1000 Crores in accordance with the budget announcement of the Government (G.O.(Ms). No.225 dated 29.12.2022). It has also green shoe option for another Rs.1000 crore.
TNGCF is a Category I (Social Venture Fund) under the SEBI Alternative Investment Fund Regulations, 2012. The TNGCF will support various climate change initiatives, mitigation and greening projects. By contributing Rs 100 crores, the State Government has become the first sponsor for the Tamil Nadu Green Climate Fund (TNGCF).
TNGCF’s investments will target four sectors, namely Energy Transition, Electric Mobility, Circular Economy, Food / Water Security. The fund will be created through various financial instruments viz., Equity, equity-linked instruments, debentures, convertible instruments etc with a tenure of 10-years, extendable by up to 2 years. The indicative list of the investment focus on Energy Transition, Mobility, Circular economy and Food & Water Security.
The fund will be managed by the Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC). The Government of Tamil Nadu is an anchor investor in all the funds and has empowered TNIFMC with a professional fund management team and an Independent Investment Committee with a focus on commercial returns.
