Should IFC be involved in Tata Mundra, as there are several other private and public sector supercritical plants planned for development in the next five years?
IFC’s support is expected to enhance the confidence of international banks and other investors in India’s power sector and, specifically, its ultra mega power program. The Tata Mundra project will establish the use of supercritical technology, making it the most energy efficient coal-based thermal power plant in the country. The project is the first to be developed by the private sector under India’s ultra mega power program, one of the most important components of the government’s policy in the power sector. The Government of India specifically requested IFC’s participation in the ultra mega projects. IFC will participate in the first of these because of the demonstration effect that the successful realization of this project will have on India’s energy sector and investors.
