3i Group Plc, Europe's biggest publicly traded buyout and venture capital firm, is believed to have acquired about 10% stake in Adani Power Ltd., for Rs9bn (US$227mn). Adani Power is a subsidiary of Adani Enterprise Ltd.
3i has made the investment in Adani Power through its subsidiary 3i IIF GP Ltd., which was set up in a partnership agreement with India Infrastructure Finance Company Ltd. (IIFCL) last April.
Adani Power is currently implementing a 1,320-MW (4X330 MW) coal-based power plant at Mundra, where Adani Enterprise is planning to build a port-based Special Economic Zone (SEZ). It is planning another plant of similar size at the same location.
The project, launched in June 2006, is expected to become operational by 2009 and achieve full capacity by the close of 2010. The total cost of the 2,640-MW project is estimated to be over Rs100bn.
The company has recently awarded the turnkey contract for setting up the second phase of the power plant to Shandong Electric Power Corporation of China. Adani Power has also secured open cast coal mining right in a block in Indonesia.
“India is witnessing phenomenal growth in the power sector, specifically power generation. 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,” said Anil Ahuja, MD & co-head of 3i Asia.
” We are planning to generate close to 7,500 MW of power in India by 2015. Towards this, we have already firmed up 2,640 MW project 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,” said Gautam Adani, Chairman of Adani Group.
Source: India Infoline