Private equity firm Blackstone today said it will be investing Rs 500 crore ($111 million) in an independent power producing venture Visa Power Ltd.
"The Blackstone Group will be investing Rs 500 crore in Visa Power Ltd, whose core asset is a 1,200 MW captive-mine based, coal fired power plant in Chhattisgarh which is in an advanced stage of development," a joint statement from both the firms said.
Visa Power is part of Visa Group, which is a minerals, metals and energy conglomerate with business interests in steel, power, mining, international trading, shipping and logistics.
"The Power sector in India is going through an exciting phase of growth which is critical to sustain the country's high levels of economic and industrial growth, and unlock India's economic potential. We are glad that Blackstone shares our vision," Visa group founder and chairman and Visa Power chairman Vishambhar Saran said in the statement.
Visa Power has a pipeline of a further 6,600 MW under development, including a 1,320 MW coal-based super critical power plant in Orissa, which is also in an advanced stage of development. The firm also plans to develop power projects in Madhya Pradesh, Jharkhand and Gujarat, the statement said.
"We believe that Visa Power's core Chhattisgarh plant with its captive mine will have a very competitive cost of generation, and will be among the better positioned independent power producers in the country", Blackstone Advisors India Chairman and Managing Director Akhil Gupta said in the statement.
"In addition, we have been impressed with the track record of Visa's promoters and its management team in developing and executing greenfield projects," he said.
"Investing in the development of infrastructure in India has long been a theme of ours at Blackstone. India needs an investment of $200 billion in the power sector, of which $50 billion is required in equity, if the country is to continue its rapid economic growth," he added.
The Chhattisgarh plant is scheduled to be commissioned in 2013-14, it said.
