HFE Bhadla (IFC-42694)

Countries
  • India
Where the impacts of the investment may be experienced.
Specific Location
Bhadla, Rajasthan,
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 24, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Hero Future Energies Private Limited
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 43.30 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 19, 2019

Disclosed by Bank Apr 24, 2019


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Project Description

According to the bank website, "Clean Solar Power (Jodhpur) Private Limited is a step-down subsidiary of Hero Future Energies Global Ltd. (“HFE”), an existing IFC client. In 2016, IFC and GIF each invested US$62.5 million in HFE. HFE is a leading renewable energy developer in India and currently has an installed capacity of more than 1.2 GW and is in the process of implementing approximately another 1 GW. The Company proposes development, construction, operation and maintenance of a 250 MW solar farm located in Bhadla, Rajasthan, India (the “Project”). The solar farm will sell power to Solar Energy Corporation of India Limited (“SECI”) pursuant to a 25-year Power Purchase Agreement (“PPA”)."

Investment Description
  • International Finance Corporation (IFC)
Private Actors

According to IFC, "The Hero Group, promoted by the Munjal family, is one of the most respected industrial conglomerates in India. The group’s main operations have historically been in automotive manufacturing and auto ancillaries, with Hero MotoCorp Ltd. as its flagship entity. The Munjal family through their investment vehicles owns a majority stake in the HFE Group. IFC and IFC GIF are other significant shareholders in HFE. HFE’s Chairman and Managing Director is Mr. Rahul Munjal, the eldest nephew of the Hero group chairman Mr. Pawan Munjal. Sunil Jain, the CEO of HFE, has 30 years of experience in the renewable energy sector. The top management is well supported by a mid-level management team comprising experienced professionals from the renewable energy industry."

Contact Information

Clean Solar Power (Jodhpur) Private Limited
Mayur Maheshwari
Company Secretary
+91 11 49598000

201, First Floor, Okhla Industrial Estate, Phase – III, New Delhi -110020
https://www.herofutureenergies.com/

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/