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IFC To Infuse $7.5 mn Debt In Bhilwara Energy

According to reports, IFC is planning to provide an ‘A’ Loan of up to R41 Cr ($7.5 Mn) to Bhilwara Energy Limited to finance a part of the project being developed under SPV – LNJ Power Ventures Limited.

LNJ Power Venture is developing a 20MW wind power project in Jaisalmer, Rajasthan, under the Group Captive Scheme in India.

BEL owns 74% stake in the SPV and remaining is held by RSWM Limited (26%).

RSWM is the flagship company for yarn and textiles manufacturing business of the LNJ Bhilwara Group. It operates several manufacturing facilities in Rajasthan. RSWM generates the majority of its electricity requirement through captive projects. This Project will enable RSWM to increase renewable energy consumption for its activities. The entire power generated by the Project is expected to be utilized by facilities owned by RSWM.

The Project is expected to be commissioned by March 31, 2013.

Incorporated in 2006, BEL is a holding company which invests and develops all hydro and other renewable projects of the LNJ Bhilwara Group.

BEL currently owns and operates: Malana Power Company Limited (86MW hydro project in Himachal Pradesh); AD Hydro Power Limited (192MW hydro project in Himachal Pradesh); and Bhilwara Green Energy Limited (49.5MW wind power project in Maharasthra). It has a pipeline of projects of about 1,800MW in different parts of India and Nepal.

Investors in BEL include, India Clean Energy III, IFC (5.24%), Wachovia, Jacob Ballas and New York Life Investment Fund.

Last year, Equis Funds Group was planning to invest in Bhilwara Energy Limited.

In 2011, IFC invested $15Mn in BEL to develop, own and operate a 51 MW wind farm in Kukudwad village, in Maharashtra.

Recently in this space, French Development Financing Institution – Proparco was planning to invest around $10 Mn (R54 Cr) as debt in a renewable energy company – RenewGen Enviro Ventures India; Orient Green Power Company divested 90% stake in its Sri Lankan subsidiary – Powergen Lanka to Colombian firm Windforce.

Couple wind energy players were also looking to raise PE funds and other alternate sources like ECBs which include Welspun Energy, Indowind Energy and Trishe Energy.

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