Bhilwara Captive

completed

LNJ Power Ventures Limited (the “Company”) is a project SPV established, by Bhilwara Energy Limited (“BEL”) through its subsidiary Bhilwara Green Energy Limited (“BGEL), to develop and own a 20 MW wind power project in Jaisalmer, Rajasthan, under the Group Captive Scheme in India (the “Project”). The Company will be owned 74% by BGEL and 26% by RSWM Ltd. (“RSWM”). RSWM is the flagship company for yarn and textiles manufacturing business of the LNJ Bhilwara Group. The Project comprises 10 Wind Turbine Generators (WTGs) of 2MW each in Villages Rajgarh and Bhaisara; Tehsil Pokran in Jaisalmer, Rajasthan. It will be constructed and operated by Inox Renewables Ltd (IRL), Inox Wind Ltd (IWL) and their associates on a turnkey basis. For each WTG of the Project, 1 ha land shall be diverted to the Company which is falling in an area of ~1500 ha, and located within a larger ~18210 ha, 300MW wind farm being developed by IRL and its associates (“Wind Farm”). IRL will secure the land and all necessary planning approvals and permits, provision of all material and equipment, construction and commissioning. Furthermore, the Project will be operated and maintained by IWL under an O&M contract with the Company for approximately 20 years. The site is located more than 50km south east of Jaisalmer. The population in the two villages neighboring the wind farm is approximately 37% literate according to the 2001 census and mostly relies on agriculture and household industries for their livelihoods. The villages are more than half a km outside the proposed Project, there are no informal settlements within 500m of the individual WTGs andrelocation will not be required. Each WTG will have a separate transformer switchyard and be connected to the substation via an above-ground interconnecting 33kV line, eventually connecting to the Inox Renewables Limited (IRL) 33/220kV substation that will service the total wind farm capacity of 300MW.IFC has been a shareholder in BEL since 2010, has been involved in the development and construction of the Allain Duhangan Hydropower Project in Himachal Pradesh since 2004, and committed debt and equity to ADHP in 2004 and again in 2007; and financed the Bhilwara Green Energy Limited (BGEL) 49.50 MW wind power project in Maharashtra. In addition, IFC provided debt to IRL for construction of part of the 300MW wind farm at Dangri. In the preparation for the IFC investment IRL commissioned an ESIA for 300MW wind project which included the 20MW now to be financed by this project.