3i India Infra Fund invests Rs 900 cr in Adani Power

Mumbai: London-based private equity firm 3i Group on Thursday said that it has picked up a minor stake in Adani Power for Rs 900 crore ($227 million). The investment was made in Adani Power, a wholly-owned subsidiary of Adani Enterprises, through 3i Gro up's investment vehicle 3i IIF GP Ltd, formed with India Infrastructure Finance Company Ltd last April.

Adani Power is presently developing an independent 2,640 MW imported coal-based thermal power plant in Gujarat. The project, launched in June last year, is expected to become operational by 2009 and achieve full capacity by the close of 2010, a press re lease issued said here.

Adani Power is a fully-owned subsidiary of Adani Enterprises.

Commenting on the transaction, 3i's Asia Managing Director and Co-Head Anil Ahuja said: 'Through this transaction, we have invested in a landmark power generation asset as well as reaffirmed our confidence in the Adani group, whose Mundra Port was backed by us in 2005. The Adani group is an extremely competent partner which has demonstrated its ability to conceptualise and execute large-scale infrastructure projects,'' he added.

Adani group Chairman Gautam Adani said the group was planning to generate close to 7,500 MW of power in the country by 2015. 'Towards this, we have already firmed up a 2,640 MW project at Mundra and have commenced work for another 2,000 MW phased projec t at Tiroda in Maharashtra. We see 3i as a committed partner who adds value to our business,'' Mr Adani said.