The World Bank approved financing for a $4.2 billion coal-fired power plant in India despite calls by environmental groups to delay the decision until further analysis of costs and environmental impact were done.

The World Bank board approved $450 million in loans by the International Finance Corp (IFC) for the Tata Mundra project, a 4,000 megawatt coal plant, which will expand access to electricity in five states in western and northern India.
IFC said the plant would use “super-critical” technology, making it India’s most efficient coal-fired plant. The plant’s volume of carbon emissions is expected to be 40 per cent less than the average carbon intensity of existing coal-fired plants in India.
The first of the power plant’s 800-megawatt units is expected to be commissioned in mid-2011, with other units launching at intervals of four months each.
“This is an important project because we believe it will encourage other developing countries to make responsible choices, using best available technologies and applying higher environmental and social standards,” Rashad Kaldany, IFC director for infrastructure, said.
In a letter to the United States representative at the World Bank, Whitney Debevoise, environmental groups argued that the global institution could not effectively fight climate change while also funding big coal polluters.