Microqual was set up in 1999 by Mr. Mahesh Choudhary with his family support and his cousin Mr. Varun Choudhary. The Company initially started manufacturing passive Radio Frequency components mainly for Wireless in Local Loop applications and kept expanding its product / service offerings. Key shareholders in the Company include Mr. Mahesh Choudhary, Mr. Varun Choudhary and their family members.

Financial investors in the Company include PE firms Indo-US Venture Partners, JAFCO Asia, BTS Advisors and Headland Capital Partners.

Microqual is planning to raise $55 million to roll-out of the first batch of towers. IFC is considering an investment of up to $25 million as a combination of debt (IFC A Loan) and equity/ quasi equity instruments.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity	15.0

* These investment figures are indicative

The initial batch of transmission towers are in the several northern states of India. Microqual expects to expand its reach further by bagging rights over towers in other parts of India as well. The initial roll-out of Power Towers is expected to take place in the above mentioned states.

a) The Project will have a strong development impact by the way of reducing the capital expenditure and set up time associated with installing new telecom infrastructure and thus facilitate expansion of telecom services in rural and remote corners of India.
b) Project will contribute to climate change mitigation by reducing the diesel fuel through the initial use of renewable based hybrid energy solutions and later on, direct tapping of electricity from transmission networks.
c) Deployment will result in employment opportunities in hilly states and rural areas. It will also contribute to government revenues by way of taxes and reduced use of subsidized diesel fuel.

IFC has a strong role in this early stage project through the following:

a. Microqual is a growing company with plans of rolling out services in India, SAARC, Middle East (GCC Countries) and Africa. IFC investment will act as a stamp of approval which will help it raise capital from international players which will be critical in its subsequent growth. Also, Microqual expects IFC to play a long term role by providing multiple financing as it grows further

b. Demonstration effect: Long term debt and equity financing from IFC will enable demonstration of Power tower in India - an alternative which will help expand telecom services to rural and LIS areas.

The proposed investment is a Category B project because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines and design criteria. Potential adverse construction impacts are likely to be limited to project sites, short term, able to be effectively managed and mitigated, and likely to have no or limited impact on environmentally sensitive features and sites. Project operational impacts are also manageable and generally mitigable through appropriate design and the implementation of suitable engineering and management measures.

Microqual’s ‘power tower’ projects will deliver significant environmental benefits. With permission to step-down power from power transmission lines to provide electricity to the telecommunication devices, the dependence on fossil fuels will be reduced. At the same time, due to infrastructure sharing model, the telecom industry’s footprint on land will be considerably reduced, while the outreach will increase significantly in rural areas.