Earlier this month,Karin Finkelston, IFC’s newly-appointed vice-president for Asia said that in the coming year, IFC will again invest up to $1 billion in India and that probably a quarter of that would go towards clean technology investments.
In March this year, we had mentioned that the International Finance Corporation (IFC) has announced corporate equity financing of up to $15 million (around Rs 69 crore) to Andhra Pradesh-based Shalivahana Green Energy Limited (SGEL), a privately owned entity producing power based on biomass. IFC had also said then that it would also provide up to $15 million in project debt financing to Rake Power Ltd (RPL), a fully owned subsidiary of SGEM, for its 2×23 Mw biomass project. The tenor of the the loan will be up to 12 years with a grace period of three years.
According to reports, IFC, a member of the World Bank Group, will provide $15 million in equity financing to Shalivahana Green Energy Limited, an Indian biomass power company, to help increase India’s power supply. IFC’s investment will support the company’s expansion of about 200 megawatts of its existing biomass power projects in the Indian states of Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, and Tamil Nadu.
Through its Post-2012 Carbon Facility, IFC will also commit to purchase up to 1.5 million Certified Emission Reductions or CERs from energy projects devyeseloped by Shalivahana during 2013 to 2020. IFC will pay for a pre-agreed percentage of the spot price of the CERs at the time of delivery, subject to a minimum price.
“IFC’s support will help us raise funds, adds credibility to our work, and raise the generation capacity of our portfolio over the next four years. The Post-2012 Carbon Facility will help us generate sustainable revenues in the long run despite the uncertainties in the global carbon market,” said M. Komaraiah, Chairman and Managing Director of Shalivahana Green Energy Limited.