Azure Power announces Series B Investment

IFC, Helion Advisors and Foundation Capital to invest

Mumbai, March 22, 2010: Azure Power, the developer and owner of India's

first privately operated, utility scale, solar power plant, today announced

the close of their Series B investment. Helion Advisors and Foundation

Capital who provided Azure's Series A funding in September 2008 and IFC, a

member of the Word Bank Group participated in this round.

*      Azure Power is India's first and leading MW scale private

Independent Power Producer in Solar Energy, with an already operating MW

scale solar power plant and several under development in the country.

*      With IFC, a member of the World Bank Group leading the investment,

the current investors Helion Advisors and Foundation Capital have also

invested in the Series B round.

*      Azure will use the investment proceeds to build, own and operate

several MW scale Solar Power Plants and continue to expand its project

pipeline across the country.

For IFC, this is the first solar project investment under the newly established cleantech investment program, in addition to being their first cleantech investment in

South Asia.

Azure Power is the recipient of the first direct investment from IFC in

megawatt scale grid-connected solar power project sector, said Anita George,

IFC Infrastructure Director for Asia. This is also IFC's first cleantech

investment in South Asia and will go a long way in contributing to the

development of the solar power generation sector in India. Under its

cleantech investment program, IFC combined its early stage equity investment

expertise and global industry knowledge to support Azure Power's market

leading cleantech innovations for positive climate change impact and energy

security".

For Helion, this is the first portfolio investment in Renewable Energy and

Foundation Capital is a leading investor in clean technology companies.

Speaking about the investment, Sanjeev Agarwal, Managing Partner, Helion,

said "We at Helion view Renewable Energy as a very exciting investment

opportunity. Apart to the potential for high growth, the sector,

particularly Solar Energy, presents the opportunity for making a difference

to the lives of millions in the country who have thus far not seen or seen

very little of electricity.

Azure Power brings something that is rare in the

industry; the actual experience of setting up, owning and running a solar

power plant. This first mover advantage, I am sure will keep them in good

stead as they continue their aggressive growth plans". "Azure Power is a

clear market leader in solar energy" said Ashmeet Sidana, General Partner at

Foundation Capital. "We believe the company's innovative technology and

model for bringing clean, affordable energy to its customers will be a

powerful combination as they help to solve India's growing need for

electricity."

"Azure's Series B funding by world's leading clean technology and

infrastructure investors IFC, Helion Advisors and Foundation Capital, is a

clear recognition of the potential of MW scale solar power generation in

India and Azure's market leading role in Solar IPP space in the South Asian

region. We have developed a strong pipeline across several states in India

and have very aggressive plans to add distributed generation capacity. It

won't be too long before Solar Power transitions from the most promising

renewable to the most credible renewable source for managing the peak power

loads in the region as well as improve the livelihood of communities in

rural India." said Inderpreet S Wadhwa, Chief Executive Officer, Azure

Power.

Over the next 12 months, Azure plans to implement several MW scale solar

power plants across the country. The plants, once fully operational, will

produce clean energy; result in avoidance of CO2 emissions and supply

regular power to a large number of households. In addition to Punjab, Azure

Power has already inked agreements with Governments of Gujarat, Haryana and

Karnataka and is also in talks with State Governments in West Bengal,

Maharashtra and Rajasthan.

India suffers from serious power shortages (an energy deficit of 11%) and

poor reliability of supply. Almost a third of the population does not have

access to electricity. This low availability of power is critically

hampering the country's industrial growth and competitiveness. Solar Power

can make a difference because it is most abundantly available during the

time of peak power loads. The timing of the funding assumes significance, as

it comes at a time when the country is embarking on an ambitious 20,000 MW

National Solar Mission by Year 2020.

About Azure Power

Azure Power is an independent solar power producer and the first private

sector company to implement a megawatt scale grid connected solar

photo-voltaic power plant in India. Azure Power's team has decades of

experience building industry-leading companies, executing complex

infrastructure projects, and financing high-growth enterprises.

Azure Power creates innovative solutions to deliver solar energy to its utility,

government, and commercial customers. By providing solar energy as a

service, Azure Power manages entire project process for their customers, by

reducing the upfront and ongoing operational costs and management.