Essar Power raises Rs350 crore from IDFC Project Equity
19 March 2009
Essar Power Limited, a part of the Essar Group, has successfully raised Rs350 crore from IDFC Project Equity for part financing the equity for its ongoing projects.
Essar Power, one of the major players in the Indian power sector, currently operates three power plants – two in Hazira with generating capacity of 515 MW and 500 MW each and one in Vadinar with a capacity of 125 MW.
The company is currently implementing four power projects which are under various stages of construction. These include a project at Salaya in Gujarat, cogeneration power plant at Vadinar in Gujarat, coal pithead project at Mahan in Madhya Pradesh and at Tori in Jharkhand. All the projects are scheduled to be completed over the next three years, pursuant to which the total capacity of Essar Power would increase to about 6000 MW.
''Essar has followed a conscious strategy of creating a balanced portfolio of power projects - across fuel sources, geographic locations and customer base. We are happy that IDFC Project Equity is partnering with us in our vision for growth. This investment by IDFC clearly indicates that projects with strong business fundamentals can still attract investment even during these challenging times,'' Anshuman Ruia, director, Essar Group, said on the occasion.
This is the first investment made by IDFC Project Equity since the initial closing of the India Infrastructure Fund managed by it, according to MK Sinha, its president and CEO.
''We find the power sector particularly attractive and are delighted to partner with a strong and credible group like Essar for our first large investment in this sector since the initial fund close in June 2008. Essar is one of the very few groups in India who have demonstrated experience in successfully setting up and operating power plants,'' Sinha said.