Temasek Holdings, the private investment company owned by the government of Singapore, is investing $200 million in GMR Energy Ltd (GEL), the wholly owned subsidiary of diversified infrastructure major GMR Infrastructure Ltd, which operates the Delhi and Hyderabad airports. GMR Energy is engaged in the business of power generation, transmission and distribution.
The investment is made through Temasek’s wholly owned subsidiary, Claymore Investment Mauritius Pte Ltd, said a GMR statement. GEL plans utilise the fund to enhance its installed power generation capacity to over 6,500MW over the next 3-4 years, from 808MW now.
GMR will issue preferencial shares to the private equity player that will be convertible into equity, it informed the Bombay Stock Exchange.
For two of its proposed projects, GEL has already achieved financial commitments and also finalised deals for fuel linkages. For several other projects, the company is in the final stages of negotiations, the statement added.
Manish Kejriwal, head of Temasek Holding, said, in the statement, “The energy sector within the infrastructure space is an attractive long term investment area. 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.”
Temasek is a Singapore sovereign wealth fund with $119 billion in assets under portfolio management as of July 2009. It targets investment in Singapore, Asia, and other emerging economies in sectors including infrastructure, energy, life sciences, financial services, telecommunication, among others. Some of its earlier investments in India include ICICI Bank, Mahindra & Mahindra, Tata Teleservices, Bharti Infratel, Punj Lloyd and Matrix Laboratories.