The Role of Venture Capital in Financing Renewable Energy and Sustainable Infrastructure for Viksit Uttar Pradesh 2047
Year: 2026
Type: book-chapter
Abstract: This chapter examines the role of venture capital in financing renewable energy and sustainable infrastructure projects in Uttar Pradesh within the broader developmental vision of Viksit Bharat 2047 and Viksit Uttar Pradesh 2047. As one of India’s largest and economically significant states, Uttar Pradesh has strong potential to contribute to sustainable national development through investments in renewable energy, green transport, climate-resilient infrastructure, and environmentally responsible urban systems. However, achieving this transition requires substantial financial support, innovation-driven investment, andinstitutional coordination. This study adopts a policy-oriented analytical approach to assess how venture capital can strengthengreen financing in emerging sustainable sectors. Venture capital has become an important financing mechanism for high-growth and high-risk industries, particularly in technology-driven and sustainability-focused enterprises, by supporting startup funding, early-stage innovation, technology commercialization, and scalable business growth. In the context of Uttar Pradesh, venture capital can significantly contribute to sectors such as solar energy, biomass and bioenergy, electric mobility, waste management, smart infrastructure, and water sustainability. Compared to traditional financing methods, venture capital offers flexibility, risk-sharing capacity, and strategic support, making it more suitable for innovation-intensive and long-gestation green projects. The chapter identifies major opportunities for venture capital-led sustainable growth while also highlighting key challenges such as capital intensity, regulatory uncertainty, weak startup ecosystems, and limited long-term financing support. Based on this analysis, the study proposes policy measures including state-supported green funds, public-private partnerships, startup incubation, tax incentives, and institutional reforms to strengthen climatefocused investment. The findings suggest that venture capital can play a transformative role in accelerating sustainable industrial growth, improving infrastructure resilience, and supporting Uttar Pradesh’s transition toward a greener, innovation-driven, and economically competitive development model by 2047.
Authors: Baliyan, Deepa, Kumar, Vinit
Institution: Government of Uttar Pradesh
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7213324167