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New Delhi, India, February 2, 2010
—IFC, a member of the Word Bank Group, will provide a $6.25 million loan to a renewable energy company, Auro Mira Energy Company Private Limited, to build an 18 megawatt biomass-based greenfield power plant through its subsidiary, Auro Mira Bio Systems Kanyakumari Private Limited.
To be based in Kanyakumari district in the southern Indian state of Tamil Nadu, the project is expected to save 76,000 tons of carbon dioxide emissions annually.
IFC’s investment will help the company create new renewable energy-based generation capacity to meet increasing demand for power in the power-starved state and will displace generation from diesel. The project will use local agriculture wastes like rubber wood, plywood waste, cashew nut shells, saw dust, and coconut shells to fire the plant. Power will be sold to the grid, to commercial and industrial users, or to power-trading companies.
“Auro Mira Energy is developing a portfolio of renewable projects in India. IFC’s clean energy focus and support to the project will help the company attract other strategic investors and partners for its growth plans in the future,” said N. Srinivasan, Chief Executive Officer, Auro Mira Energy.
IFC’s involvement with Auro Mira Energy as a long- term partner will help attract long-term finance at fixed interest rates in local currency needed to sustain the flow of resources into this critical sector. Auro Mira Energy wants to demonstrate its ability to develop commercially viable and sustainable renewable energy projects with minimum or no subsidies.
“IFC is excited to be able to support a biomass project in current market conditions. The project will go a long way in harnessing an important renewable energy resource in a commercially viable manner,” said Anita George, IFC Infrastructure Director for South Asia, East Asia, and Middle East and North Africa.
India faces severe shortages of electricity, with peak shortages estimated at about12 percent of total demand. Power shortages adversely impact commerce, industry, agriculture, education, and socioeconomic development. By providing stable and continuous power supply, this project will demonstrate the ability to tackle problems of erratic electricity supply.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by helping firms like Auro Mira expand renewable energy generation capacities.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
About the Auro Mira Group
Auro Mira is a renewable energy group in India, established in 2005, with interest in developing a portfolio of renewable energy projects across wind, biomass, and hydro sectors. Auro Mira has successfully turned around one biomass fired power plant (7.5 megawatts) and built and commissioned another plant (10 megawatts), both in the state of Tamil Nadu in India. Auro Mira is also executing run-of–the-river projects in the southern state of Karnataka. Auro Mira has committed to develop up to 300 megawatts from all renewable energy sources by 2012.
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