Blackstone closes in on its third Indian power sector deal in 15 months
Blackstone Group has signed a definitive agreement to pay INR500 crore ($111 million) for an approximate 25.2% stake in the power generation arm of Kolkata-based conglomerate Visa Group. It is the private equity firm’s third investment in India’s power generation sector, taking its expenditure to almost $500 million in 15 months, The Times of India reported, citing sources familiar with the situation.
Visa Power's core asset is a 1,200 MW coal-fired plant in Chhattisgarh. It also has 6,600 MW of capacity under development, including a 1,320 MW coal-based super critical plant in Orissa. Blackstone's capital will be used to develop the Chhattisgarh project.
A formal announcement of Blackstone's involvement is expected later this week. The firm's previous investments in India's power sector are Moser Baer Projects and Monnet Power. The sector fits in well with Blackstone's stated objective to target opportunities related to infrastructure development and domestic consumption.
Demand for power in India is growing at 6-7% a year and the country already struggles with a 10% base load and a 13% peak load deficit.
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