3i announces $45 million investment in Orissa power project

International investor 3i group on Thursday announced that it is investing $45 million through its India infrastructure fund, for a minority stake in Ind-Barath Energy (Utkal) Ld, a subsidiary of Ind-Barath Power Infra Ltd (IBPIL).

Ind-Barath Energy is building a 700 MW (comprising two units of 350 MW each) coal-fired power plant in Orissa. ''Utkal is well positioned to take advantage of the demand for power in India, which is growing strongly,'' remarked Anil Ahuja, managing director and head, 3i Asia. ''This investment allows us to partner with IBPIL, which is a power generation company with an established track record of delivery.''

Cressida Hogg, managing partner of 3i Infrastructure, described it as ''an exciting investment in the Indian infrastructure market.'' K. Raghu, chairman, Ind-Barath Group, says it will work closely with 3i ''towards building out our business strategy and delivering our plans for improving India's infrastructure.''

IBPIL has eight operational power projects (adding up to 290.6 MW), five power projects under implementation (of 1,728.0 MW), and three planned power projects.

3i is an international investor focused on private equity, infrastructure and debt management, investing in Europe, Asia and North America. It entered India in 2005 and has invested in various sectors includnig media, automotives, construction, power, ports and manufacturing. It currently manages a portfolio worth $920 million.

In 2007, 3i signed a strategic partnership with the India Infrastructure Finance Company Limited (IIFCL) to invest in Indian infrastructure. A year later, it closed a non-listed $1.2 billion India Infrastructure fund; since then, it has invested $505 million in Indian infrastructure. Mundra Ports was 3i's first investment in India to go public in 2007. 3i is also an investor in an Indian real estate fund.