BEL is a holding company which invests and develops all hydro and other renewable projects of the LNJ Bhilwara Group (“Bhilwara Group” or the “Sponsor”). BEL is held: 83.12% by the Bhilwara Group (through family and group entities; Rajasthan Spinning & Weaving Mills (17.41%) and HEG (25.80%)), 5.24% by IFC, 7.87% by India Clean Energy III, and the balance 3.77% is held by institutional investors Wachovia, Jacob Ballas and New York Life Investment Fund. For the year ended March 31, 2010, its revenues and net income were $37.9 million and $21.8 million respectively on a consolidated basis. During the same period, BEL had a total asset of $534 million and total liabilities amounting to $ 314.5 million including $283.5 3 million of Long-term debt. IFC has an existing relationship with the Bhilwara Group in the AD Hydro Project in which IFC has committed (IFC Investment Projects #11632 and #26500), to provide total debt of about US$67 million and equity of about US$15 million (for a 12% stake). In 2010, IFC made an equity investment of US$25 million (Project#29157) to acquire a stake of approximately 5.24% in the Company.

The expected total project cost is approximately $71.5 million. IFC will provide up to $15 million of A loan to the Project company.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The project will be located in Kukudwad village, Satara District, Maharashtra State.

1) Providing long term local currency financing: IFC is able to provide long term fixed rate rupee loans in India which is difficult in this market. Indian banks typically provide variable rate loans which adversely affect power project's viability due to interest rate fluctuations; 2) Financing of wind Independent Power Producers (IPPs): Foreign banks have largely been absent from wind IPP financing except in some cases. IFC's participation in the Project is likely to significantly help Bhilwara Energy complete the financing of this Project as well as help it in future fund raising; and 3) IFC involvement with the Project will help Bhilwara Energy in adopting a structured framework to manage its social and environmental systems which will act as a benchmark for its subsequent wind projects.

1) Increase generation of renewable power: Bhilwara Wind will set up a 51 MW renewable energy based generation capacity to meet the increasing demand for power in the country and in the process help reduce GHG Emission intensity of Indian power sector; 2) Private sector development in renewable energy: the Project will help Bhilwara expand in the wind business by taping into IFC’s experience in structuring wind projects in emerging markets; and 3) Employment Generation: The Project creates employment opportunities during construction and operation for local communities.

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.

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the proposed investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS 1: Social and Environmental Assessment and Management System;
PS 2: Labor and Working Conditions; PS 3: Pollution Prevention and Abatement; and PS 4: Community Health, Safety and Security.

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).