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Home » CER » IFC to invest $55mn in Simran Wind project of Kolkata-based Techno Electric and Engineering Company.

IFC to invest $55mn in Simran Wind project of Kolkata-based Techno Electric and Engineering Company.

 Panchabuta had mentioned last month that  Kolkata-based Techno Electric and Engineering Company was in talks with IFC, Standard Chartered Bank and DBS Bank for raising 750 crore of debt to part-finance its 200 mw wind power project in Tamil Nadu.

The company plans to invest about 1,150 crore in the wind power project in two phases. The first phase will include a 125 mw capacity and is expected to be commissioned by June 2011 in Tamil Nadu.

The second phase will include a 75 mw project. It will be commissioned by March next year.

According to reports this week, International Finance Corporation (IFC), the investment arm of the World Bank, is planning to set up $55 million debt-equity investment (about Rs 248 crore) in Simran Wind Project, the clean energy arm of Kolkata-based listed firm Techno Electric and Engineering Company. Simran Wind Project has an installed capacity of 50.4 mw in Karnataka and Tamil Nadu. The company is now expanding its capacity for a total new capacity of about 126.9 mw at Muthianpatti, Amdhapuram and Rasta in Tamil Nadu.

IFC will provide up to $15 million in corporate equity financing to the company to finance its pipeline projects and up to $40 million in debt financing in the form of term‘A’ loan for financing the 126.9 mw wind projects, thereby, taking total investment to $55 million. The tenure of the ‘A’ loan will be up to 12 years with a grace period of up to 3 years.

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