IDFC Project Equity to pick up stakes in infra projects

Mumbai: IDFC Project Equity Co, set up by Infrastructure Development Finance Company (IDFC) as an infrastructure equity investment management company, has decided to invest about $110 million in the next few weeks to pick up stakes in two major infrastructure projects in the country.

One of the two projects that the company is set to pick up a stake is the Gujarat-based city gas distribution firm, Sabarmati Gas Ltd, which is jointly promoted by BPCL and Gujarat State Petroleum Corporation. It is likely to pick up a nearly 16 per stake in the gas distribution firm, which was formed in 2006 with an authorised capital of Rs 100 crore for gas distribution in Gandhinagar, Meshana and Sabarkantha districts.

The other project in which IDFC Project Equity is set to pick up stake is in the power generation sector.

In March, the company announced an investment of Rs 350 crore in Essar Power Ltd for part financing the equity for its ongoing projects — this was the first investment since the initial close of the India Infrastructure Fund.

With these three investments, the company would have committed an investment about $250 million by June. The remaining part of the $875-million corpus will be invested in the next two years.