The International Finance Corporation (IFC) is considering financing three solar parks in the state of Karnataka, in India.
The project cost is estimated at about US$147 million equivalent. The proposed IFC investment consists of an IFC ‘A’ Loan of up to US$31 million equivalent, and syndication of parallel loans of up to US$80 million equivalent.
Azure Power India Private Ltd is the sponsor for this project. Azure is an independent power producer which builds, owns and operates solar power plants in India. It also provides EPC and O&M services for all its plants. It was founded by Mr. Inderpreet Wadhwa who is also a shareholder. Other key investors in Azure include IFC, Helion Venture Partners, Foundation Capital, DEG, Proparco and IFC Global Infrastructure Fund.
Azure has a successful track record of implementing solar power projects. It has several operational plants in multiple states across India, and a strong pipeline of under-construction and planned solar plants.
The project involves development of a 130 MW solar power plant in the state of Karnataka by Azure Power India Private Ltd, an existing IFC client, through three wholly owned subsidiaries Azure Power (Raj.) Private Limited (APPL), Azure Sunrise Private Limited (ASPL) and Azure Photovoltaic Private Limited (APVPL). The three SPVs - APPL, ASPL & APVPL - have been setup for the sole purpose of construction, operation, and maintenance of 40 MW, 50 MW and 40 MW of solar projects respectively and will not have any other operations.
The project is expected to be commissioned by June 30, 2016. The off-takers will be the three state distribution companies namely Hubli Electricity Supply Company (HESCOM), Chamundeshwari Electricity Supply Company (CESCOM) and Gulbarga Electricity Supply Company (GESCOM).