Tata Power and ICICI Venture have launched a new platform company to invest in Indian power projects over the next two-three years.
The new platform, Resurgent Power Ventures, has investment commitments from Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Kuwait Investment Authority, and Oman’s State General Reserve Fund.
It will have an initial capital of about $850m, raised from the sponsors and partner investors either directly or through their affiliates.
The platform, which will target projects in advanced stages and near operational readiness or operating, will increase its investment based on market opportunities
Tata Power CEO Anil Sardana said: “It has been our constant endeavor to leverage opportunities in the Indian power sector and create stake holder value through organic and inorganic means.
“This Platform is one such step in this direction for assets that would be win-win for all stakeholders as it would be value accreting considering the assets would be near-completion or already operating.”
Tata Power said that the platform will also target acquisition of controlling stakes in power generating companies, both conventional thermal, hydroelectric as well as transmission assets in the country.
According to ICICI Venture, the platform will combine the complementary skills of the sponsors and investors.
ICICI Venture executive director Mohit Batra said: “Insightful understanding of the Indian infrastructure ecosystem supported by discerning long term global capital would provide a framework for investments with an optimum risk-return profile and also act as a catalyst for revitalization and growth of the Indian Power sector.”
Image: The new platform will target power projects that are in advanced stages and near operational readiness in India. Photo: courtesy of Witthaya Phonsawat/ FreeDigitalPhotos.net.