 "Tata, ICICI Venture partner to launch power platform")
Tata Power’s wholly-owned subsidiary Tata Power International Pte Ltd and ICICI Venture on Friday announced the creation of a platform company to facilitate investment in power projects in India in two-three years, which are in advanced stages and near-operational 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, the Kuwait Investment Authority (KIA) and the State General Reserve Fund (SGRF) of Oman.
The platform will raise an initial capital of up to $850 million, to be contributed by the sponsors and partner investors either directly or through their affiliates. This can be raised. The platform targets acquisition of controlling stakes in power-generating companies, including thermal, hydroelectric and transmission assets in India.
Anil Sardana, managing director and chief executive officer, Tata Power, said: “This platform is one such step 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 that Tata Power International has taken the initiative to join with co-sponsor and investors of tremendous reputation. We hope this would generate good value for them, too.”
Mohit Batra, executive director of ICICI Venture, said: “The platform combines the complementary skills of the sponsors and blue-chip 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 revitalisation and growth of the Indian power sector.”
