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| Auro Mira Bio Systems Kanyakumari Private Limited |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28160 |
| Company name | Auro Mira Bio Systems Kanyakumari Pvt. Ltd. |
| Country | India |
| Sector | Electric Power |
| Environmental category | B |
| Department | Infrastructure |
| Status | Pending Approval |
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| Date SPI disclosed | August 31, 2009 |
| Projected board date | September 30, 2009 |
| Date revised SPI disclosed | September 4, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Auro Mira Bio Systems Kanyakumari Private Limited is involved in the construction, operation and maintenance of a 15MW biomass based power plant in Kanyakumari district of the state of Tamil Nadu, India (the “Project”). The Project will use locally available agriculture wastes like rubber wood, plywood waste, cashew nut shells, saw dust and rice husk, coconut shell and fibre, subabul, casurina, and eucalyptus to fire the plant. Power produced will be sold to the grid or to commercial and industrial users or to power trading companies. Construction of the Project is expected to start in December 2009 and is scheduled to be commissioned by March 2011. |
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| Project sponsor and major shareholders of project company |
| Auro Mira Group (“Auro Mira” or the “Group”), is the Sponsor of the project and will invest all the equity in the Project through its holding company Auro Mira Energy Company Private Limited (“AMECPL”). 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. Mr. N. Srinivasan is the CEO of Auro Mira Energy Company Private Limited. Barings Private Equity holds majority shares of AMECPL and the balance is held by the management team, headed by Mr. N. Srinivasan. |
| Total project cost and amount and nature of IFC's investment |
| The total Project cost is estimated to be about $16mn. The proposed IFC investment is approximately $5.25 million A Loan for IFC’s own account and a possible syndicated B Loan of approximately $5.25 million (based on market appetite) in the Project. IFC may also consider a small equity investment. |
| Location of project and description of site |
| The Project is a green-field site located near Aralvaimozhi and Muppandal villages, Kanyakumari district in the state of Tamil Nadu in India. It is a rural area located close to the National Highway no. 7, accessible by a local road. |
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| Anticipated development impact of the project |
- Reduction of power shortages:
India faces severe shortages of electricity, with base load and peak shortages estimated at approximately 9% and 12% of total demand respectively. The Project will contribute to reduce this demand-supply gap, which has resulted in erratic supply of electricity with fluctuations in voltage and/or power outages. The consequences of the power shortage are far-reaching and adversely impact commerce, industry, agriculture, education, and socioeconomic development.
- Reduction of carbon emissions:
The project is a renewable energy source and is therefore expected to save 76000 tons CO2 emissions annually.
- Linkages to local rural economy:
The Project will help the local economy through creation of contractual jobs during construction and permanent jobs during operation. The Project will also provide additional source of income to farmers from their farm wastes. |
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| IFC's expected development contribution |
Auro Mira is pushing for a sizeable expansion in renewable energy projects and needs support of financial institutions with a clean energy focus. IFC’s involvement with Auro Mira in this Project as a long term partner is expected to help attract long term finance at fixed interest rates in local currency which is needed to make renewable energy projects more robust and sustain flow of resources into this sector.
Auro Mira is in the process of developing a sizeable portfolio of renewable projects in India. IFC’s investment in the Project will help Auro Mira in attracting other strategic investors and partners for its growth plans in the future.
IFC’s participation will ensure that the company achieves international ‘good practice’ standards in its environmental and social performance, which will in turn support the company’s sustainable growth. |
| Environmental and social issues - Category B |
This investment has been categorized as B based upon application of IFC's Policy on Social and Environmental Sustainability. The key environmental, social and health & safety issues associated with this investment include: environmental and social (E&S) management systems, impacts of green-field project construction; worker health and safety both during construction and operational phases; fuel sourcing for biomass projects, fire risks associated with storage of biomass fuel, air emissions from the power plant operation and related community health, safety and security issues.
Further details on the potential environmental and social impact of the Project and guidance on how and where information about the Project can be obtained are provided in the IFC Environmental & Social Review Summary. |
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| For inquiries about the project, contact: |
Mr.V.K.VIJAYARAGHAVAN
VP-FINANCE
Auro Mira Energy Company Private Limited
Auro Mira House
Shafee Mohammed Road, Thousand Lights,
Chennai – 600 006, India
Ph: + 91 – 40 – 28209800
Mr.Y.V.KRISHNAM RAJU
GM-CORPORATE QA&EHS
Auro Mira Energy Company Private Limited
Auro Mira House
Shafee Mohammed Road, Thousand Lights,
Chennai – 600 006, India
Ph: + 91 – 40 – 28209800 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Panchayat Office
Aralvaimozhi Village
Thovalai Taluk
Kanyakumari District
Tamil Nadu, India
Pin Code: 629301 |
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