IFC, a member of the World Bank Group, is providing funding of $5 million to NSL Renewable Power. This will be through compulsorily convertible debentures to support the development of wind and hydropower projects.
IFC’s investment will help NSL Renewable Power double its power generation capacity over the next 18 months. This second round of financing follows a $20-million equity investment that IFC had made in the company in 2011.
“IFC’s financial support and expertise in the renewable energy sector will have a strong demonstration effect and encourage other investors to invest in NSL Renewable Power,” M. Prabhakar Rao, Chairman, NSL Group said.
“IFC’s strategic partnership will help the company transition from being a medium-sized market participant to a domestic market leader and, over time, become an investor and developer in other emerging markets.”
“The investment will help partially address power scarcity and contribute to change mitigation,” Thomas Davenport, IFC Director for South Asia, said.
NSL Renewable Power develops and operates renewable energy projects using biomass, wind, hydro, and solar technologies. It has an operational capacity of 185 MW across India.