IFC to invest $450 mn in Tata Mundra project

April 9th, 2008 - 4:08 pm ICT by admin  

Mumbai, April 9 (IANS) The International Finance Corporation (IFC), a World Bank group, will be investing $450 million in Coastal Gujarat Power Limited’s Tata Mundra project to help expand access to electricity in five states of western and northern India. Of the total project cost of $4.2 billion, IFC will provide $450 million with a 20-year tenure long-term financing that improves the risk profile of the project and complements commercially available financing from local banks of around 15 years maturity, said an IFC statement.

The project’s 4,000 MW coal-fired power plant is expected to supply affordable power to industrial and agricultural users and serve 16 million domestic consumers.

The first of the power plant’s 800 MW units is expected to be commissioned in mid 2011, with the other units launching at intervals of four months each. The plant will create 5,000 jobs during construction and 700 jobs once it is operational.

IFC is prioritising investments in renewable energy around the world. It intends to support only highly efficient coal-fired projects, such as Tata Mundra, that have a relatively lower carbon footprint than existing coal plants.

Paolo Martelli, IFC director for South Asia, said: “We are pleased to support this project, which reflects the World Bank Group’s strategy to help India’s power sector increase energy access and rural connectivity, while improving transmission and distribution efficiency.”

IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilising private capital in local and international financial markets.

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