CDPQ to invest $364m in CLP India

CDPQ will take a 40% stake in CLP India, according to a statement, with CLP holding the remainder. The new capital will support CLP India's push into low-carbon and renewable energy generation as well as non-generation business opportunities in the power sector such as transmission and distribution. The company also plans to invest in new and innovative business models related to its core business.

CLP has operated in India, which it calls one of its primary growth markets, since 2002. Currently coal represents the largest share of its portfolio, with 1.32 gigawatts of installed capacity at its plant in Jhajjar. The company also operates a series of wind farms with a total installed capacity of 924 megawatts, a gas-fired plant with a capacity of 655 MW, and a solar plant with a 46 MW capacity.

The India unit contributed HK$4.9 billion ($622 million) to the parent company's revenue for the year ended December 2017, up from HK$3.8 billion the year before. This represents a relatively small portion of the company's overall revenue, which grew from HK$79.4 billion to HK$92.1 billion over the same period led by Hong Kong, mainland China, and Australia.

CLP India reported a HK$646 million net profit for 2017, up from HK$469 the year before, while CLP's overall net profit rose from HK$13.8 billion to $15.3 billion.

CDPQ had C$308.3 billion ($237 billion) in global assets under management as of June 2018. Its activity in India's energy sector includes Resurgent Power Ventures, an energy-focused investment vehicle set up by Tata Power and ICICI Venture in 2016, in which CDPQ holds a minority stake. The group also holds a minority stake in solar panel manufacturer Azure Power, which it acquired in a private placement concurrent with the company's US IPO in 2016.

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• Topics
• South Asia
• Infrastructure
• Expansion
• India
• Caisse de depot et placement du Quebec (CDPQ)
• energy
• Cleantech