Moser Baer arm ties up IFC loan for TN project

Written by Sajan C Kumar | Chennai | Updated: Jun 16 2009, 07:49am hrs
Sapphire Industrial Infrastructure Pvt Ltd (SIIPL), a wholly-owned subsidiary of Moser Baer Clean Energy Limited (MBCEL) has tied up a $4-million (close to Rs 20 crore) International Finance Corporation (IFC) credit line for its proposed 5-mw solar photovoltaic (PV) power at Sivaganga, Tamil Nadu.

MBCEL, engaged in solar farm development, is in the process of building solar photovoltaic (SPV) installations of 5 mw each across India through SIIPL. SIIPL bagged the tender from Tamil Nadu Energy Development Agency (TEDA) for the Sivaganga project under a programme by the Union ministry of new and renewable energy.

Sources told FE, the $20-million (Rs 97 crore) project will get a $6- million (Rs 29 crore) funding through equity contributed by Moser Baer Projects Pvt Ltd apart from the IFC support of $4 million. The balance $10 million (Rs 48 crore) would be financed through local financial insituations and banks.

The estimated average annual net power generation the Sivaganga project is expected to be approximately 8,000 mwh, which corresponds to an annual PLF of about 18%. The output of the PV plant will contribute to the increasing power supplies of the adjacent region, within TN, over a period of 25 years, sources said.

Industry analysts said the project has been designed to be a catalyst for development of a self-sustaining grid-connected renewable electricity market. Besides contributing towards reduction of the energy supply-demand gap in India's power sector, the project would help in reducing the CO2 emission levels in India, which are estimated at 1,250 million tonne per annum.

Sources said IFC has accorded non-investment status for the project funding and offered to participate in downstream operations within the solar generation sector in India. The pilot project will bring in significant environmental benefits through reduction of greenhouse gas emissions.