The Venture Capital Fund for Energy Efficiency (VCFEE), established by the BEE, is one of the financial instruments under the Framework for Energy Efficient Economic Development of National Mission for Enhanced Energy Efficiency (NMEEE). The VCFEE provides risk capital support to EE investments in new technologies, goods and services. The Government of India has approved about INR 2.1 bn for the VCFEE. The fund, led by the VCFEE fund manager, aims to create significant volumes in EE deal flow through advertising and soliciting opportunities in the energy efficiency sector. Energy Service Companies (ESCOs) and companies that plan to undertake EE projects through energy performance contracting are targeted as key potential beneficiaries of the VCFEE. The fund is registered with the Securities and Exchange Board of India under its Alternative Investment Funds Regulation (2012). In its first phase, the VCFEE will focus the allocation of its equity capital to energy efficiency projects in Government buildings and Municipalities.