Azure Power to raise $4.6 mn from IFC

Azure Power India Private Limited to raise around $4.6 million from International Finance Corporation (IFC). The fund raising will support the company's proposed $6.2 million investment plan to set up constructs, owns and operates solar power plants in Gujarat.

Azure Sun Energy Private Limited (Azure Sun) is a 100 per cent subsidiary of Azure Power India Private Limited (AZI), which develops, constructs, owns and operates solar power plants to develop the project in Gujarat.

The total project cost is estimated at $ 6.2 million and IFC’s proposed investment is an “A” Loan of Indian Rupee equivalent of $4.6 million for a period of up to 15 years, according to IFC.

Currently, the company has 17MW of solar power projects operational and another 40MW under development. AZI carries out all engineering and construction related work for its projects through a subsidiary. Azure Sun has been awarded a 25-year concession to construct and operate a 2.5 MW rooftop solar power in Gandhinagar by the Government of Gujarat.

The power generated under the project will be sold at a pre-agreed tariff to Torrent Power Limited (TPL), a privately owned distribution company that holds the license for electricity distribution in Gandhinagar and several other cities in Gujarat.