India, UK launch $620m green infra PE fund

The two governments will contribute up to GBP120 million each to the Green Growth Equity Fund (GGEF), according to a statement, with the rest to be raised from outside investors. Initially the vehicle will focus on the renewable energy market, with additional areas of interest to include energy transmission and storage, water treatment, waste management, and transportation.

Along with its primary investment goals, the fund is also expected to demonstrate the growth potential for India’s infrastructure sector and encourage additional participation by private investors, while developing the City of London as a location for the Indian government to raise capital from global markets.

A manager for the fund has not yet been selected. The UK government and India’s National Investment and Infrastructure Fund (NIIF) plan to choose one by this autumn. Two market engagement meetings are also scheduled for May to solicit investor feedback and suggestions on the vehicle.

India’s government has set ambitious targets for renewable energy, committing the country to generate 175 gigawatts from solar, wind and other renewable sources by 2022.

Several private investors have a presence in the space, particularly through renewable energy platforms such as ReNew Power Ventures – backed by Goldman Sachs, the Asian Development Bank and the Abu Dhabi Investment Authority (ADIA) – and Greenko, whose backers include ADIA as well as GIC Private.

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• Topics
• South Asia
• Infrastructure
• Infrastructure
• Fundraising
• GPs
• India
• Cleantech
• energy