US International Development Finance Corporation or DFC, Norway government-owned Norfund and two other financiers have provided $1 billion in funding to waste-to-energy producer SAEL Industries, the company said in a release on Tuesday.
Asian Development Bank and Tata Cleantech Capital are the other financiers. The company did not provide a break up of how much of the funding was in the form of debt and what component was an equity investment.
ET had reported on 18 January that SAEL Industries was close to finalising a $1 billion funding.
DFC recently financed Adani Ports and Special Economic Zone with a $550 million loan for its port terminal project in Sri Lanka.
“DFC’s Investment in SAEL will increase renewable energy capacity, reduce particulate matter, and support increased farmer incomes”, said Patricia Lacina, deputy chief of mission, USA.
SAEL Industries is promoted by Jasbir Awla, a Delhi-based entrepreneur with interests in Agro-processing and warehousing. The company diversified into renewable energy generation about five years ago using agricultural waste to fire power plants.
“These partnerships will propel us to new heights in our mission to provide sustainable energy solutions to the people of India”, said Jasbir Awla, SAEL’s chairman and managing director.
SAEL uses stubble which is generated as waste after the rice crop is harvested and produces energy from the waste. The stubble is usually burnt by farmers which is seen as a major cause of air pollution in northern Indian states. It’s total renewable energy generation capacity is pegged at 2.7 gigawatts.
“We have been thrilled to partner with SAEL for the past year, and we are happy to be able to further finance the company’s effort to reach its ambitious targets for increasing its renewable energy capacity, in line with the mandate Norfund has for the management of the Norwegian Climate Investment Fund.”,said Tellef Thorleifsson ,chief executive officer, Norfund
