Shalivahana Green Energy to get Rs 69-cr IFC funding

International Finance Corporation (IFC) has announced corporate equity financing up to $15 million (around Rs 69 crore) to Andhra Pradesh-based Shalivahana Green Energy Limited (SGEL), a privately owned entity producing power based on biomass, to fund the latter's pipeline projects.

The IFC would also provide up to $15 million in project debt financing to Rake Power Ltd (RPL), a fully owned subsidiary of SGEM, for its 2x23 MW biomass projects. The tenor of the the loan will be up to 12 years with a grace period of 3 years.

SGEL is 50.1 per cent owned by its promoter M Komaraiah while the balance is held by IL&FS Energy Development Company Ltd (20%) and Axis Infrastructure Fund 1 (29.90%). It is part of the Shalivahana group, whose other businesses include civil construction, education and cement production.

In power, SGEL has an installed capacity of 47MW spread across five plants. Three new biomass power plants under construction will bring additional capacity of about 45MW by March 2011.

The company has a pipeline of approximately 200MW of which two biomass projects of 23MW each (project cost of about $25 million each) will be held in RPL.

SGEL’s existing projects are located in Andhra Pradesh, Maharashtra and Karnataka. SGEL’s pipeline projects are located in Madhya Pradesh, Orissa, Jharkhand and Chhatisgarh. The two new biomass plants to be developed under RPL will be in Jharkhand and Orissa.