The Company has been founded by Inderpreet Wadhwa who has over 15 years of experience in the technology sector as an entrepreneur and with large corporates. He has put together a team of experienced professionals with relevant industry experience in US and India; and constituted an Advisory board of industry veterans. Inderpreet’s father, H.S. Wadhwa, the former Chairman of state-owned National Insurance Company and Magma Leasing, is the COO. In September 2008, the Company raised a Series A round from Foundation Capital (“Foundation”) and Helion Venture Partners (“Helion”). Foundation is a $2.5 billion fund with over $1 billion in investments in clean technology companies. Helion is an India-focused $350 million venture capital fund.

The project cost is approximately $60 million. IFC will provide a $10 million quasi-equity investment to help finance the project.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

The site for the 5MW power plant in Punjab has been chosen as the Awan village. Located about 40kms from Amritsar, in Punjab province in India, the site has an area of 12acres (50,000m2) and has a relatively well-developed physical-infrastructure, with access to transport, utilities and a skilled workforce. Site selection for the 15MW power plant in Gujarat is still underway.

The project is expected to have the following development impact: - CO2 emission reduction. There are no carbon emissions associated with the production of electricity from the operation of solar energy plants. Once fully operational, the project has the capacity to produce over 25,000MW-hrs of clean electricity each year which should significantly reduce CO2 emissions. - Employment creation. The project will provide permanent employment opportunities for low and medium skilled labor for locals. -Support regulatory framework in India for solar energy. The project aims to support the development of a regulatory framework for solar energy as a key source of renewable energy in India.

IFC has three roles to play in this project: - IFC industry expertise and credibility raising capital. IFC is one of the world's leading financial institutions in funding the solar industry, providing finance to Independent Solar Power Producers and solar PV manufacturers and consumers. - IFC appraisal feedback. IFC’s industry expert and industry consultant engaged with the company’s operational and financial management teams to assess the solar market and determine appropriate assumptions. - Structuring. IFC would work to create a viable financing structure for the project.

This corporate investment in Azure Power is a Category B project 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. Potential impacts in construction activities besides being mitigable are likely to be limited to project site; short term; and likely to have limited impact on environmentally sensitive areas. Further, it is possible to readily design and implement engineering and management measures to mitigate adverse impacts during construction and operations. The Company will manage its environmental and social performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability.

IFC’s review of this corporate investment in Azure Power was focused on the Company’s: corporate social and environmental management systems; processes for social and environmental assessment and impact mitigation; community consultation and engagement; and labor and working conditions. In addition to the corporate social and environmental capacity, a preliminary project centered review of the solar photovoltaic power plant under implementation at Awan village in Punjab was also undertaken.

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