Blackstone invests in Indian energy firm

US private equity group Blackstone has decided to invest $300m in Indian energy firm Moser Baer. The capital will be used by Moser Baer to fund its expansion plans. Meanwhile, reports suggest that the private equity firm plans to invest up to $3bn in the Indian infrastructure and consumer sectors over the next five years.

New York-based private equity group Blackstone will invest $300 million in Indian power developer Moser Baer, a source close to the company told Infrastructure Investor.

The investment is seen as a step by Moser Baer to partly fund its expansion plans. Further details of the deal will be announced later this week. The deal comes a week after Blackstone acquired Dynegy, the American independent power producer for $4.7 billion.

Meanwhile, the group is expected to increase its investments in India to up to $3 billion over the next five years, according to news reports. The focus of these investments will be infrastructure and the consumer markets.

Presently, half of Blackstone’s $1 billion investment in India is focused on the infrastructure sector. Earlier in July, the group acquired small stakes in Monnet Power, a subsidiary of listed firm Monnet Ispat and Energy, for $59 million.

Reports suggest that Moser Baer needs a total of INR30 billion (€501.1 million; $643.3 million) to build power plants generating 5,000 megawatts by 2016. More than three-fourths of this amount will be met through debt, with the remainder to come from the company founders and private equity.

Moser Baer has currently raised a total of INR4.7 billion in debt and INR 2 billion in equity, including the funds from Blackstone, according to local media reports. The company has also achieved financial close on 1220 megawatts’ worth of power projects.