IFC may offer $130 mn for wind farms in Gujarat, Rajasthan

NEW DELHI: International Finance Corp is likely to provide about Rs 682 crore funding to Inox Renewables for developing wind farms in Gujarat and Rajasthan.

IFC, part of the World Bank group, focuses on lending to entities in the developing world.

"The total project cost is estimated at USD 480 million for up to 400 MW of wind farms proposed to be implemented by March 2013.

"The proposed IFC investment is an A loan for IFC's own account of up to USD 90 million and equity investment of up to USD 40 million," according to the multilateral lender.

These wind farms, coming up in Gujarat and Rajasthan, will be developed by Inox Renewables Ltd, a subsidiary of Gujarat Fluorochemicals Ltd.

As per IFC's Summary of Investment Information, the funding proposal would be put up for the consideration of its board on May 24.

"The first of those sites is likely to be the 300 MW wind farm at Dangri in Rajasthan. Dangri wind farm site is approximately 65 kilometres south east of Jaisalmer in the Thar Desert, Rajasthan," it noted.

The participation of IFC is likely to help Inox to complete financing of the project.

IFC said the project would increase generation of renewable power generation and also help "a mid-tier renewable energy company at an early stage to develop its business".

Inox Renewables houses the wind power generation business of Inox group and plans to build up to 3,000 MW of wind projects by 2017, mostly in Rajasthan and Gujarat.

Presently, the company operates wind farms in Tamil Nadu, Rajasthan and Maharashtra. A 100 MW wind farm at Dangri, Rajasthan is under construction.