PE-backed Azure Power may get $70M from US Exim Bank

Export-Import Bank of the US may provide long-term finance of Rs 395.9 crore ($70.35 million) to solar power producer Azure Power India Pvt Ltd for its solar power plant at Nagaur in Rajasthan.

The plant is an expansion of the firm’s existing 5 MW Nagaur photo-voltaic facility, and will ensure a total output of 40 MW, making it the largest solar power plant to be developed at a single location under the National Solar Mission. The current project started in January this year.

“With this project, we are committed to working towards meeting the grid parity objective of the National Solar Mission in India,” said Inderpreet Wadhwa, CEO of Azure Power.

Last December, Azure Power commissioned its plant in Rajasthan and the additional capacity at this project continues the drive towards grid parity. The plant is expected to be operational by February 2013 and will reduce carbon emissions of up to 66,000 metric tonnes per year. The company expects to reach solar grid parity by 2017.

Azure Power is an independent solar power producer and implements megawatt-scale, grid-connected solar photovoltaic power plants in India. The company chiefly caters to utilities, governments and commercial customers. The firm started its first project in Punjab, followed by its Gujarat project.

Last November, Azure Power received $13.6 million (Rs 68 crore) funding from Germany’s bilateral development finance institution DEG. Prior to that, the company had also raised an undisclosed amount from Helion Venture Partners and Foundation Capital in a Series A funding. The company also received undisclosed funding from IFC in 2010.

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