Simran is promoted by Techno Electric and Engineering Company Limited (“Techno” or the “Sponsor”) which is a power EPC company based in Kolkata in India and holds 100% shares in Simran. Mr. P.P. Gupta is the key promoter of Techno which is a listed company.

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 IFC ‘A’ Loan to Simran for financing the 126.9 MW wind projects. The tenor of the ‘A’ loan will be up to 12 years with a grace period of up to 3 years.

The IFC Post-2012 Carbon Facility (the “Facility”) proposes to forward purchase up to 1.75 million Certified Emission Reductions (“CERs”) to be generated through 2020 by Simran’s wind power projects. Simran will receive from IFC a pre-determined percentage of the CER spot price at the time of delivery, subject a floor and a cap. IFC will on-deliver CERs delivered by Simran to the participants in the Facility on a pro-rata basis.

40.09 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	39.92
Equity	0.17

* These investment figures are indicative

Simran’s existing projects are located in the states of Karnataka and Tamil Nadu and the pipeline of projects is located in Tamil Nadu.

1. Increase power generation from renewable sources: The Indian power market is characterized by significant supply deficit which is expected to continue in the medium term. Through this investment, IFC supports a company which will add approximately 200MW of renewable energy generation capacity over the next 2 years to meet the growing electricity demand in India.
2. Climate Change Impact: The Project helps mitigate negative climate change impacts by helping avoid GHG emissions.
3. Private Sector Development: 80% of power generation in India is still state-owned, with all major players focused on large thermal and hydro power projects. In line with its mandate, IFC''s participation in this Project will help stimulate private sector development within the renewable energy generation sector.
4. Employment Generation: The Project creates employment opportunities during project identification, construction and operation for local communities

1. IFC''s participation will provide a "stamp of approval" to a mid-tier renewable energy company at an early stage to develop its business and facilitate its current and future fund raising. IFC''s Performance Standards will also enable the Company to achieve higher environmental and social standards.

2. IFC has been involved in several wind as well as other renewable energy projects across different geographies. The Company will be able to leverage IFC''s large global knowledge pool to scale up its business and build up a sizeable portfolio of renewable energy assets.

3. The Facility will purchase CERs generated by Simran''s renewable energy projects up to 2020 at a price indexed to the market price at the time of delivery, subject to a floor. This will help the Company address the current uncertainty in the carbon markets beyond 2012. The revenue based on the floor price will provide a high quality revenue stream to Simran''s renewable energy projects from the CERs to be generated in the future and can be considered by lenders for debt repayment after the projects register. Simran will also benefit from increases in CER prices as the purchase price is indexed to the market price at the time of delivery.

The proposed investment in the Company and the Project 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.

Further details on the potential environmental and social impacts, corresponding mitigation measures, and guidance on how and where information about the Project can be obtained are provided in the IFC Environmental and Social Review Summary (ESRS) and the Environmental and Social Action Plan (ESAP).