3i India fund invests $45m in energy company

The $1.2bn infrastructure fund has acquired a minority stake in Ind-Barath Energy, its second deal in India this week after unveiling a $111m investment in a roads operator on Monday.

3i India Infrastructure Fund, a $1.2 billion infrastructure fund established by UK-listed firm 3i, has spent $45 million to acquire a minority stake in Ind-Barath Energy (Utkal), a subsidiary of Indian energy firm Ind-Barath Power Infra.

Utkal is building a 700-megawatt coal-fired power plant, split into two units of 350 megawatts, in the state of Orissa, located on the east coast of India. The acquisition comes hot on the heels of the fund’s $111 million investment in roads operator KMC Infratech, announced on Monday.

Ind-Barath Power Infra, Utkal's parent company, owns eight operational power projects generating just over 290 megawatts of power. It is implementing a further five, which will generate 1,728 megawatts when completed, and is in the planning stages for three power deals.

3i’s $1.2 billion unlisted Indian infrastructure fund was closed in 2007 and is close to being fully invested with a portfolio that includes roads, ports, airports and power projects. 3i is understood to be on the verge of raising a second, similar-sized Indian infrastructure fund. 

On a recent trip to India, 3i chief executive Michael Queen said the firm was planning to have between $2 billion and $3 billion invested in Indian infrastructure over the next two years.