INDIA BUSINESS WORLD - OCTOBER 21st - NOVEMBER 15th
- 2007
3I INDIA PICKS RS 900CR STAKE IN ADANI POWER
3i INDIA Infrastructure Fund GP, an investment vehicle of 3i Group, a leading global private equity and venture capital company, has invested Rs 900 crore for a minority stake in Adani Power of Ahmedabadbased Adani Group.
The fund will participate in Adani Power's proposed independent 2,640 mw imported coal-based thermal power plant in Gujarat. The project, launched in June 2006, is expected to become operational by 2009 and achieve full capacity by the close of 2010.
It is the first investment of the fund and it is further targeting to invest $1 billion in India in the days to come.
3i Asia managing director and co-head Anil Ahuja said: "Through this transaction, we have invested in a landmark power generation asset as well as reaffirmed our confidence in the Adani Group, whose Mundra port was backed by us in 2005. Adani Group is an extremely competent partner who has demonstrated its ability to conceptualise and execute largescale infrastructure projects."
3i Group Plc chairman, Baroness Hogg, who is in India this week, last week at Mundra port where the 2,640 mw Mundra power project is being implemented. The power project at Mundra, in her view, would benefit from the infrastructure support of the port and SEZ.
Said Adani Group chairman Gautam Adani: "We are planning to generate close to 7,500 mw in India by 2015. Towards this, we have already firmed up 2,640 mw at Mundra and have commenced work for another 2,000 mw phased project at Tiroda in Maharashtra. We see 3i as a committed partner who adds value to our business. I am impressed by 3i's in-depth understanding of the infrastructure sector, clarity of decision making and speed of execution."
3i entered into an agreement with India Infrastructure Finance Company (IIFCL) last April. Together with other lenders, IIFCL is also participating in debt funding of the project. "In light of the substantial requirement for funding in the sector, the collaborative arrangement between IIFCL and 3i provides a strong push for funding infrastructure projects, " said IIFCL chairman and director S S Kohli.
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