Temasek infuses Rs883 crore in GMR Energy's expansion
10 April 2010
Singapore's state-owned investment arm and sovereign wealth fund, Temasek Holdings, said yesterday that it would invest Rs883 crore ($200 million) in GMR Energy to help the Indian company expand its power generation capacity.
GMR Energy, the power unit of the Bangalore-headquartered global infrastructure major, plans to increase capacity to 6,500 megawatts over three to four years, from the present 808 MW.
The capital infusion will be done through Temasek's wholly-owned subsidiary, Claymore Investments (Mauritius) Pte Ltd, in a structured paper compulsorily convertible into equity, the company said in a press release.
"We are extremely happy to have Temasek Holdings as a shareholder of GEL. Temasek is an established investor globally and one of the earliest investors in India. We are confident that this relationship will be a mutually gratifying experience for both parties," said G M Rao, GMR Group chairman.
Manish Kejriwal, Head of Temasek Holdings India said, "India may have historically lagged behind in adding new generation capacity, we believe that enabling regulations and private sector participation will allow the sector to add substantially to India's GDP growth rate."
The company said that it has already achieved financial closure and achieved fuel linkages for GMR Kamalanga (1,050 MW) and Emco Energy (600 MW).