After a 73 per cent drop in 2009, private equity (PE) investments in the country’s power sector have started picking up. The total investment in the sector in the current year till June rose 53 per cent to $834 million (around Rs 3,836.4 crore) from $542 million (Rs 2,493.2 crore) in 2009. The 73 per cent drop to $542 million was from $2,021 million (around Rs 9,296.6 crore) in 2008, according to Venture Intelligence, a Chennai-based research firm that specialises in PE as well as mergers and acquisitions.
Twelve deals have been concluded in the sector till date in 2010, compared to 23 in 2009. The investments were mainly driven by coal in the non-renewable segment and by hydro in the renewable energy segment. During the current calendar year, the non-renewable energy sector attracted $625 million (around Rs 2,875 crore), compared to $339 million (around Rs 1,559.4 crore) in 2009.
In 2010, investments in hydro energy rose to $25 million (around Rs 115 crore) through two deals, compared to $1 million (around Rs 4.6 crore) in one deal in 2009. The multiple-renewable energy sector reported two deals worth a total of $125 million (around Rs 575 crore), compared to $86 million (around Rs 395.6 crore) in three deals in 2009.
Wind energy failed to attract any investment this year and last year.
