HPS is promoted by first generation entrepreneurs Gyanesh Pandey, Ratnesh Yadav, Manoj Sinha and Charles Ransler. The founders won several business plan competitions in the United States and decided to implement their business plan starting in the state of Bihar in India.

HPS expects to establish over 1000 new installations in India and pilot installations in Nepal, Indonesia and Cambodia etc. over the next five years. HPS systems are typically installed in rural areas and are expected to be financed in a combination of equity and debt finance from commercial lenders. HPS is presently in the midst of raising its Pre-Series A funding to fund its first 100 villages in 2010. IFC is considering an investment of up to $1.25 million in HPS. Post this round, IFC will also consider providing further equity and debt financing to HPS for its expansion beyond 100 plants.

1.25 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.25
Equity	1.0

* These investment figures are indicative

The HPS plants will be spread across villages in the states of Bihar and Uttar Pradesh.

The Project has a strong development impact in terms of impacting real 'bottom of pyramid' households and commercial establishments through affordable electricity supply apart from employment generation and environmental benefits. Rural electrification is in an 'acute crisis' as more than 125,000 Indian villages are presently un-electrified. The Indian government has designated several thousand villages as 'economically impossible' to reach via conventional means. Further, current power options (kerosene lanterns, diesel generators) are uneconomical, inefficient and wreak enormous environmental havoc. Without electricity, these villagers are forced to live at the whim of natural forces and lack basic communication, education and healthcare infrastructure. HPS has identified 25,000 villages as feasible sites within India's rice producing area (Bihar and neighboring states) for its projects.

IFC's investment is expected to lead to the following additional outcomes: a. IFC's financing will help HPS complete its first 100 plants and help the Company firmly establish the viability and scale potential of its business model. The distributed power business model is considered risky for commercial financing and the Company's success in its first 100 plants will help establish its credentials in the market. b. IFC's participation will provide HPS a vital 'stamp of approval' which will help attract other investors and commercial bank financing. c. IFC will play an important role in helping HPS expand its presence in other emerging countries through IFC relationships and knowledge of these countries. d. The Company has sought IFC's help in establishing and expanding its staff training services which we intend to do through our Advisory Services program.

This corporate investment in HPS 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. The key aspects of relevance to IFC''s proposed investment in HPS include: 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 view of the fact that the location and siting of all projects to be developed by HPS are as yet not known, the Company’s individual projects may result in impacts that may have to be managed in accordance with the provisions of IFC Performance Standards 3 through to 8. Hence, the Company will put in place an appropriate social, environmental, occupational health and safety management system (SEMS), consistent with IFC Performance Standards, to manage such project impacts. Potential impacts from each of the facilities are likely to be limited in scale and limited to facility site. 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.

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.