September 08, 2008

3i India Limited picks up minority stake in Adani Power

It is reported that 3i India Infrastructure Fund Limited has invested INR 900 crore (USD 227 million) for a minority stake in Adani Power Ltd, a fully owned subsidiary of Adani Enterprises Limited part of the Adani Group.

Mr Anil Ahuja, MD of 3i Asia said that through this transaction, 3i has invested in a power generation asset and reaffirmed confidence in the Adani Group, who’s Mundra Port was backed by 3i in 2005. He said that "India is witnessing phenomenal growth in the power sector, specifically power generation. Through this transaction, we have invested in a landmark power generation asset and reaffirmed our confidence in the Adani group, whose Mundra Port was backed by us in 2005. The Adani Group is a competent partner, which has demonstrated its ability to conceptualize and execute large-scale infrastructure projects.”

It is noted that Adani Power is at present developing an independent 2,640 MW imported coal based thermal power plant at Mundra in Kutch district of Gujarat. The project, launched in June 2006, is expected to become operational by 2009 and achieve full capacity by 2010.