The project sponsor is the C.K Somany Group (the sponsors), who owns Hindusthan National Glass & Industries Limited (HNG), a leading player in the domestic glass container market. The Group has identified float glass as the next area of growth for the future given the current and projected strong demand for float glass in India.

Total project cost is estimated at $130 million. The proposed IFC investment consists of an A Loan of up to $20 million and an equity investment of up to $5 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity	5.0

* These investment figures are indicative

The project is located in Halol in the State of Gujarat, India.

Expected development impacts of the project include: - Support capacity increase for a floatglass product, which is technologically superior to sheet glass and which is expected to face supply shortages in the medium term due to continued strong domestic demand growth; - Contribute to better quality construction and housing sector by providing a technically superior floatglass product, which is not widely used in India; - Create direct employment and related ancillary economic activities in the Gujarat region; and - Set high environmental, social and health performance standards, which can be expected to have a positive demonstration effect in the region.

IFC will play an important role in providing the necessary financing and technical expertise which will be key for the successful implementation of the project. In this regard, IFC’s additionality will include the following: - Long-term financing: IFC will be providing financial support through its long-term loan investment which is not readily available locally and more suited for larger investments. - Equity financing: IFC’s equity participation in the company is expected to enhance the company’s visibility. - Environmental and Social Standard Setting: IFC’s participation will strengthen the company’s Environment, Health and Safety practices and help the company achieve international standards.

This is a category B project according to IFC’s environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspects of the project were analyzed: 
- environment and social assessment, and management systems;
- labor and working conditions including management of employee occupational health and safety; - pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes); and
- management of community environment, health, safety and security personnel related impacts, both during construction and operation.

A summary discussion on the social and environmental aspects of relevance to the project including the company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC.

Further, the company will locally disclose social and environmental assessment documents at the following location:

GIDC Office, Phase I, Halol GIDC, District - Panchmahal, PIN - 382115, Gujarat, India