IDFC invests Rs4 billion in Indian wind power

The investment by India's largest infrastructure-focused private equity firm will help create a parts-making operation for the wind energy industry in India. The IDFC manages three private equity funds.

IDFC Private Equity, the largest infrastructure-focused private equity firm in India, has made an Rs4 billion ($86 million, €58 million) investment in foundry company SE Forge to help establish a parts-making operation for the wind energy industry.

SE Forge, a unit of Suzlon Energy, the world’s fifth-largest maker of wind turbines, makes large-scale foundry and forging materials. The company has facilities in Coimbatore, an industrial city in the Indian state of Tamil Nadu, and in Vadodara in the Indian state of Gujarat.

SE Forge will use both facilities to make parts for the wind energy industry, which has a growing need for large castings and forging products, IDFC president Luis Miranda said in a statement.

“The wind energy sector is expected to maintain its high growth supported by strong tail-winds like increasing cost-competitiveness of wind energy, high crude prices, thrust for green power and support from governments,” Miranda said.

IDFC, a subsidiary of the Infrastructure Development Finance Company, was established in 2002. It manages three funds: the Rs8.4 billion India Development Fund; the Rs19.9 billion IDFC Private Equity Fund II and the Rs28.3 billion IDFC Private Equity Fund III.

In April the firm made a $10 million investment in Emergent Ventures India, an advisory firm that provides services for the Clean Development Mechanism programme. The programme allows developed countries with greenhouse gas reduction commitments to invest in projects that cut carbon emissions in developing countries like India.