The Blackstone Group announced that it will be investing Rs 2750 million (approximately USD 60 million) for 12.5% equity stake in Monnet Power Company (MPCL), an independent power producer (IPP). Monnet Power Company (MPCL) is a wholly owned subsidiary of Monnet Ispat and Energy. MPCL is developing a 1,050 MW coal fired power plant in Orissa backed by pit-head captive coal mines, and has a pipeline of a further 2000 MW under development. MPCL is a 100% subsidiary of Monnet Ispat & Energy (MIEL), which is India`s second largest manufacturer of integrated coal-based sponge iron.
Commenting on the association, Sandeep Jajodia, executive vice chairman and managing director of MIEL and director of MPCL, said, “I am glad to partner with one of the largest private equity investors in the world. Their interest in sharing knowledge with management and their deep understanding of the power industry globally and in India, will add value to MPCL in several ways for the benefit of its shareholders. We will be able to utilize our experience in setting up power plants and developing mines, while leveraging Blackstone`s global linkages and knowledge base“.
Akhil Gupta, chairman and managing director of Blackstone Advisors India (P) said, “Infrastructure development is critical for India`s growth and Blackstone is excited about participating in India`s growth through investments in the power sector. We believe that Monnet Power with its mine mouth coal plant has one of the lowest cost of producing power and, hence, is among the best positioned IPPs in the country. In addition, we have been impressed with the track record of Monnet`s management team in developing mines and executing projects. Our extensive experience in the power sector globally will enable us to be value-added partners to management and strengthen the Company`s position.“
Source: My Iris