LA India II (IFC-601426)

Countries
  • India
Where the impacts of the investment may be experienced.
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
Active
Bank Risk Rating
U
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
Sep 26, 2016
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.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 3.50 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)
$ 3.50 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 Aug 2, 2017

Disclosed by Bank Apr 19, 2017


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Project Description
India has the largest population on the planet without electricity access, with 300mn people still relying on kerosene for basic lighting. The program seeks to accelerate the development of markets for clean off-grid lighting products. This will be done by addressing market barriers and working with the private sector to build and develop supply chains to extend distribution to rural areas through the following activities: - Market Intelligence: to help product marketers and distributors understand the new off-grid lighting market segment, supply and distribution chains. The insights from the research serve to inform their business and strategic plans. - Quality Assurance: promoting the adoption of Lighting Global quality standards across the sector to counter the risk of market spoilage from infiltration of low quality products that erodes confidence in the new off-grid technologies among consumers, financiers and stakeholders. - Access to Finance: Adequate financing along the entire supply chain has been identified as being critical for the growth of the off-grid lighting market. The program will explore opportunities to work with financial institutions to meet market demand - Consumer Education: creating awareness, for a market to grow and thrive, consumers must know what products are available, and understand the value and benefits of these products over what consumers are currently using (kerosene and candles etc.). Consumers must also be able to distinguish between good and poor quality products in order to get good value for their scarce resources. - Business Development Support: provide a range of market and business development support activities directly to manufacturers, distributors and retailers under this component with the objective of fostering competition and creating a vibrant and competitive market that will extend distribution to the rural areas.
People Affected By This Project
India has the largest population on the planet without electricity access, with 300mn having no electricity connection (Govt of India, June 2016). IFC market assessment shows that by 2018 the market for larger systems is expected to grow at 34% annually and smaller lanterns at 18%. The program seeks to accelerate the development of markets for clean off-grid lighting products. This will be done by addressing market barriers and working with the private sector to build and develop supply chains to extend distribution to rural areas. Transition to cleaner alternatives will result in the avoidance of GHG emissions which would have been generated through the use of kerosene for lighting. With large unmet demand & product penetration at only 5-7%, there is huge potential for growth in next 5 years that can only be achieved if existing market barriers are addressed
Investment Description
  • International Finance Corporation (IFC)
Contact Information
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