The Aureos South Asia Fund (ASAF), a specialist fund established by private equity group Aureos Capital, has invested a total of $8 million in Auro Mira Energy Company, an Indian renewable energy firm.
The investment from ASAF is intended to help Auro Mira complete its current projects as well as acquire land and licenses for further new projects, according to a press release.
Established in 2005, Auro Mira currently has two sites in India that generate renewable energy using biomass, for sale to corporates across the country. The company recently commenced four new renewable energy projects to attain 100-megawatts generation capacity by 2012.
As part of the national action plan on climate change, the Indian government has obligated the State Electricity Boards (SEBs) in the country to buy 5 percent of India’s grid purchase from renewable energy sources. The SEBs are required to achieve this minimum standard by 2009-10 after which it will be increased by one percent every year for ten years. This policy is expected to lead to a huge increase in demand for renewable energy.
“Auro Mira’s next step is to ensure that the company is perfectly poised to take full advantage of the forecast upturn in demand for renewable energy. The next phase of our expansion will quadruple our output capacity and the investment from Aureos will be a key boost to help us realise this aim,” said N Srinivasan, chief executive of Auro Mira.
ASAF is a specialist fund managed by Aureos South Asia Managers, a subsidiary of Aureos Capital, a private equity fund management company with a total of $1.2 billion in funds under management. The company specialises in backing small and medium sized businesses in emerging markets. The current investment is the 11th made by the fund.