Tata Power's wholly owned subsidiary Tata Power International Pte Limited and ICICI Venture has announced the creation of a platform company to facilitate investment in power projects in India in the coming two-three years, which are in advanced stages & near operational readiness or operating.
The platform is co-sponsored by Tata Power and ICICI Bank and has commitments from partner investors, Caisse de dépôt et placement du Québec (CDPQ) of Canada, Kuwait Investment Authority (KIA) and State General Reserve Fund (SGRF) of the Sultanate of Oman, which are some of the largest investors globally.
The platform will raise an initial capital of up to US$850 million to be contributed by the sponsors and partner investors either directly or through their affiliates. This can be upsized going forward, depending on market opportunities.
The platform targets acquisition of controlling stakes in power generating companies, both conventional thermal, hydroelectric and transmission assets in India.
Mr. Anil Sardana, CEO & Managing Director, Tata Power 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. We are happy to have Tata Power International has taken the initiative to join with co-sponsor & investors of tremendous reputation namely ICICI, CDPQ, KIA and SGRF & we hope this would generate good value for them too.”
Mr. Mohit Batra, Executive Director, ICICI Venture said:
“The Platform combines the complementary skills of the sponsors and blue-chip sophisticated investors. Insightful understanding of the lndian 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.”
Mr. Rashad Kaldany, Executive Vice-President, Growth Markets at CDPQ, stated:
“Tata Power and ICICI are key strategic players in India and their sophisticated knowledge of the market, combined with their vast expertise in infrastructure and energy, will provide critical insight to the Platform. As we continue to build our presence in India, a priority market for us, we value these well-established partners that share our long-term approach to investing.”
Mr. H.E. Abdulsalam Al Murshidi, Executive President of SGRF, said:
“We are excited to be part of this Platform that combines the expertise of two of India’s leading business groups along with international reputed institutional investors. We are also particularly thrilled to invest in the world’s 5th largest electricity producing country and increase our exposure to Indian infrastructure, a key beneficiary of India’s economic development”