London-based private-equity firm 3i Group Plc has announced that an infrastructure fund under its management has invested $161 million in Krishnapatnam Port Company Ltd (KPCL).

The investment has been made by 3i India infrastructure fund, a $1.2-billion fund managed by 3i's global infrastructure investment team, a release said.

KPCL, promoted by Hyderabad-based Navayuga Group, has a 30-year concession to develop, operate and maintain Krishnapatnam Port on the east coast. The concession is extendable up to 50 years

The port is a natural, deep water, all-weather port with 12km of quays along the Andhra coast. The company will use the investment to finance its business expansion plans, it said.

The port is expected to handle about 100 million tonnes of bulk cargo when fully completed.

''Krishnapatanam Port Company provides us with an opportunity to invest in a high quality port asset being developed on the east coast of India,'' 3i's head of Asia Anil Ahuja was quoted as saying.

3i India infrastructure fund has completed investments in three major projects, including that of KPCL, the release said. 3i closed the India Infrastructure fund in March 2008, it added.

''The Krishnapatnam port will have best-in class infrastructure, including a deep draft, adequate land area and excellent road and rail connectivity. We regard 3i as a string partner which understands the local infrastructure space and offers us a wide global network of contacts and experience," said CV Rao, chairman of the Navayuga Group.