The Hindu : Business : Tata Power wind energy project to get ADB funding

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Thursday, May 03, 2007
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Tata Power wind energy project to get ADB funding

Special Correspondent

NEW DELHI: The Asian Development Bank (ADB) is promoting renewable energy in India by helping to finance construction and operation of wind energy facilities of Tata Power Company Limited, the largest private power company in the country. The project is expected to produce about 100 MW of power.

According to Takeo Koike, an investment specialist with ADB's private sector operations department, the project being aided by the bank will contribute to a reduction of emissions of 2.6 million tonnes of carbon dioxide during the minimum project life of 20 years. The multilateral bank is to provide an Indian rupee-denominated loan of up to Rs. 352 crore, or the equivalent of about $79.3 million, to Tata Power without a government guarantee to set up and operate wind energy facilities at two locations in Maharashtra.

IREDA to co-finance

The Indian Renewable Energy Development Agency (IREDA) is to co-finance up to Rs 91 crore. The tenor of the ADB loan will be up to 13 years with a fixed interest rate during the entire loan period, an ADB statement said.

Maharashtra, where the projects for Tata Power are located, is one of the leading states in promoting wind power generation. As of September 2006, the installed wind power capacity in the State was 1,242 MW, the second highest among all the States in the country. From 2003 to March 2006, Maharashtra developed more than 750 MW of additional capacity.

Of the two projects being implemented by Tata Power, one is near Khandke village in Ahmednagar district, while the other is near Bramanvel village in Dhulia district of Maharashtra.

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