International Fina-nce Corporation (IFC), the investment arm of the World Bank, is planning to

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set up $55 million debt-equity investment (about Rs 248 crore) in Simran Wind Project, the clean energy arm of Kolkata-based listed firm Techno Electric and Engineering Company.

Simran Wind Project has an installed capacity of 50.4 mw in Karnataka and Tamil Nadu. The company is now expanding its capacity for a total new capacity of about 126.9 mw at Muthianpatti, Amdhapuram and Rasta in Tamil Nadu.

IFC will provide up to $15 million in corporate equity financing to the company to finance its pipeline projects and up to $40 million in debt financing in the form of term‘A’ loan for financing the 126.9 mw wind projects, thereby, taking total investment to $55 million. The tenure of the ‘A’ loan will be up to 12 years with a grace period of up to 3 years.

Meanwhile, IFC Post-2012 Carbon Facility proposes to forward purchase up to 1.75 million Certified Emission Reductions (“CERs”) to be generated through 2020 by Simran’s projects. The firm will receive a pre-determined percentage of the CER spot price at the time of delivery; subject to a floor and a cap.

“Through this investment, IFC supports a firm which will add about 200 mw of energy generation capacity to meet the growing demand in India, ” IFC said.