Environmental & Social Review Summary
Project Number
25115
Company Name
MSPL LIMITED
Date ESRS Disclosed
Feb 27, 2007
Country
India
Region
South Asia
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : May 29, 2007
Signed : Jun 22, 2007
Invested : Jul 16, 2007
Sector
Wind Power - Renewable Energy Generation
Industry
Infrastructure
Department
Regional Industry - INF Asia & Pac
Project Description
MSPL is one of India’s leading exporters of high-grade processed iron ore to China. It is part of the Baldota Group (the Group), a large Indian, family-owned industrial group comprising several companies in the business of iron ore mining, processing and exporting; wind power generation; and production and distribution of industrial gases. MSPL is the largest company within the Baldota Group and one of the largest private iron ore mining, processing and exporting companies in India.
The project consists of the installation, operation, and maintenance of 36.6 MW of wind power generators at several locations in the States of Gujarat and/or Karnataka in the western part of the country. The project will be implemented by MSPL, which is also currently the owner of the single largest installed capacity of wind power assets in the country (111.6 MW). Electricity will be sold through long-term PPAs to local electricity distribution companies. The proposed IFC A Loan is a corporate facility to MSPL to be used to finance the company’s new investments in wind power.
Construction and operation arrangements for the project are not yet finalized. In the past, MSPL has worked with two wind power project developers for its wind farms, and has generally entered into 20-year operation and maintenance (O&M) contracts with them. In the Indian wind power market, turbine manufacturers are involved in the identification of land with suitable wind profiles, as well as in the construction, commissioning, and operation of the wind parks. During development of the wind parks, their ownership is transferred to companies desirous of owning wind power generators/installations. The owners of wind power generators/installations then enter into long term power purchase agreements (PPAs) with electricity distribution companies.
The project consists of the installation, operation, and maintenance of 36.6 MW of wind power generators at several locations in the States of Gujarat and/or Karnataka in the western part of the country. The project will be implemented by MSPL, which is also currently the owner of the single largest installed capacity of wind power assets in the country (111.6 MW). Electricity will be sold through long-term PPAs to local electricity distribution companies. The proposed IFC A Loan is a corporate facility to MSPL to be used to finance the company’s new investments in wind power.
Construction and operation arrangements for the project are not yet finalized. In the past, MSPL has worked with two wind power project developers for its wind farms, and has generally entered into 20-year operation and maintenance (O&M) contracts with them. In the Indian wind power market, turbine manufacturers are involved in the identification of land with suitable wind profiles, as well as in the construction, commissioning, and operation of the wind parks. During development of the wind parks, their ownership is transferred to companies desirous of owning wind power generators/installations. The owners of wind power generators/installations then enter into long term power purchase agreements (PPAs) with electricity distribution companies.
Overview of IFC's Scope of Review
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental and social information submitted by the project company including a review of:
- company’s business plan;
- EHS Systems Manual;
- MSPL’s Corporate Sustainability Report for 2005-06; and
- Human Resource Manual.
The appraisal team interviewed two principal shareholders of the company, corporate and site operations managers, corporate and site EHS managers, and the site manager of the O&M service provider for MSPL’s existing wind power operations.
Further, the appraisal included site visits to the company’s existing wind power operations at Jajikalgudda in Karnataka, India. The following key environment, occupational health, safety and social aspects of relevance to the project were analyzed during the appraisal:
- Social and Environment assessment and environmental, social, and health and safety management systems;
- Labor and working conditions; and
- Pollution prevention and abatement.
In view of the fact that location and scale of the wind power installations proposed to be financed under IFC financing have not yet been determined, it is not possible to identify other potential aspects and impacts, of relevance to the project, at this stage. IFC review focused on the company’s existing wind power operations as an indicator of the company’s environmental and social performance.
- company’s business plan;
- EHS Systems Manual;
- MSPL’s Corporate Sustainability Report for 2005-06; and
- Human Resource Manual.
The appraisal team interviewed two principal shareholders of the company, corporate and site operations managers, corporate and site EHS managers, and the site manager of the O&M service provider for MSPL’s existing wind power operations.
Further, the appraisal included site visits to the company’s existing wind power operations at Jajikalgudda in Karnataka, India. The following key environment, occupational health, safety and social aspects of relevance to the project were analyzed during the appraisal:
- Social and Environment assessment and environmental, social, and health and safety management systems;
- Labor and working conditions; and
- Pollution prevention and abatement.
In view of the fact that location and scale of the wind power installations proposed to be financed under IFC financing have not yet been determined, it is not possible to identify other potential aspects and impacts, of relevance to the project, at this stage. IFC review focused on the company’s existing wind power operations as an indicator of the company’s environmental and social performance.
