IDFC Alternatives has invested around $70 million in a portfolio of operating solar and wind projects to kick-start the formation of an India-focused renewables platform.
MK Sinha, managing partner and chief executive of the Mumbai-based firm, told Infrastructure Investor that the platform will have a structure similar to Highway Concessions One Private, a vehicle that manages road assets acquired by IDFC's two India Infrastructure Funds.
Sinha declined to provide further details on the platform. The transaction remains subject to regulatory approval.
With $1.8 billion under management across two infrastructure funds, IDFC Alternatives has deployed over $1.2 billion since inception. It now plans to invest another $300 million in assets across the infrastructure spectrum in the next 12 months.
“We are looking at a huge pipeline of deals,” said Sinha. “And we are also looking to build a platform for transmission services.” He added that power generation capacity in India has doubled over the last few years.
Pricing of assets in the Indian infrastructure market remained reasonable despite strong competitions among institutional investors for quality projects, he noted.
In February, the firm acquired a majority stake in Bangalore Elevated Tollway for about $109 million.