Attracted by India’s stressed infrastructure assets play, financial investors are joining hands with utilities to acquire power projects.
Macquarie Group Ltd is the latest among financial investors to seek such a partnership. It is exploring a partnership with Chennai-based OPG Power Ventures to acquire power projects.
US-based private equity firm Latitude Capital is also scouting for investments in stressed power projects. Stressed assets accounted for around 12% of the total loans in the Indian banking system.
While several funds have announced their intention to invest, not many deals have happened yet.
Earlier this month, Infrastructure Leasing and Financial Services Ltd said it has partnered with global private equity firm Lone Star to jointly invest $550 million in stressed infrastructure projects in India for asset purchases of up to $2.5 billion. Tata Power Co. Ltd last year partnered with ICICI Venture Funds Management Co. Ltd to invest as much as $850 million in power projects. Read More….