NEW DELHI (Commodity Online): 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.

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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. (IndiaPRWire)

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