IFC eyes funding to green projects in Gujarat

The World Bank Group arm, International Finance Corporation (IFC) has set its eyes on the 'green' projects in India especially focusing on Gujarat and Rajasthan. The international financing organization has identified potential investment areas under solar power, wind energy and gas-based energy for its upcoming funding plans.

The organisation has set its focus on Gujarat and Rajasthan for funding renewable energy projects. In Gujarat, IFC has invested about $1 billion so far, while in coming months, it will invest in renewable energy generating companies.

"India has many projects in the pipeline in terms of power generation from renewable energy sources like wind, solar and gas-based energy sources. Renewable energy has been an important part of our policy. We are keen to invest in Rajasthan and Gujarat in these sectors. In Gujarat, our focus for funding will be on solar power, wind energy, gas distribution and anything that relates to 'green' energy " said Anita George, director (infrastructure), IFC.

In India, IFC had invested upto $10 million in some of the power companies engaged in renewable energy sector like Azure Power, Applied Solar Technologies, Auro Mira Energy, Husk Power Systems and Bhilwara Energy.

"Last year, about 75 per cent of our total funding to the power sector in India, went for the renewable energy including solar power, wind and gas-based energy," George informed, adding that the country had seen good growth in solar energy generation as well as technology development.

"We are investing in both, generation as well as technology development," she added.The renewable energy generation involves a high cost with longer realisation period; hence, many of the private players have remained reluctant to venture into the "less viable" renewable energy projects. The IFC has set its focus on funding to the renewable energy projects not only in India, but across the Asia-Pacific region.

However, George did not divulge the investment targets for India investments.

"We are looking at it in a more holistic perspective. We have not set any targets for the investments in India but we are focused at the 'green' energy at present," she said.

"We have been investing across all emerging markets like Thailand and Phillipines for the power sector. Now, we are looking to invest in renewable energy sector in South East Asia," added George.

IFC is one of the financing arms of the World Bank Group, which has provided more than $3 billion of funding to over 80 countries.