Clear Trade eyes mega power projects

US-based private equity player Clear Trade, which is floating a $12 billion fund along with leading US private equity firms to invest in Indian power and infrastructure projects, is in talks with a leading power producer in China to float a consortium to bid for the ultra mega power projects (UMPP) in India.

"We are in discussions with a leading Chinese company to form a technical consortium to bid for the UMPPs and hope to finalise it within a few weeks," said Deepak Kavadia, managing director, Clear Trade.

Some of the US funds associated with Clear Trade had made over $500 million investments in the Chinese power major, he added.

The Indian government is planning to set up 9 UMPPs in the country with about 4,000 mw capacity each to add at least 78,000 mw of additional power by 2012.

Sasan and Krishnapatinam UMPPs have been awarded to Reliance Power and Mundra to Tata Power.

A consortium of the Hyderabad-based Lanco Infratech and Globeleque of Singapore had won the bid for Sasan, but was disqualified later to award the project to Reliance Power.

A joint venture between Singapore"�based SembCorp and Indiabulls is in the race for the 4,000 mw UMPP at Tilaiya, Jharkhand.

Clear Trade will also finalise investments to the tune of $150 million in two 1,000 mw power projects and another $50 million in two wind power and one biomass power project soon, said Deepak Kavadia.

US-based Cornell Capital, Axis Bank-promoted Axis Private Equity, Morgan Stanley and other US funds, including one of the largest PE players in the hospitality sector, are participating in the $12 billion fund titled Clear Investments Power and Infrastructure Fund.

Clear Trade is also in talks with some of the leading European pension funds to join the fund.