IDFC Project Equity backs Indian builder with $50m

The investment from the India Infrastructure Fund will be used to build two stretches of toll roads between Nagpur in Maharashtra, on India’s western coast, and Raipur in Chhattisgarh, in the centre of the country

IDFC Project Equity has invested $50 million for a 49 percent stake in each of two special purpose vehicles (SPVs) managed by Nashik Ashoka, a builder and operator of roads and bridges in India.

The SPVs will build two sections of toll roads totalling 162 kilometres between Nagpur in Maharashtra, located on India’s western coast and Raipur in Chhattisgarh, in central India.

Set up in 1976, Nashik Ashoka builds and operates roads and bridges in India on a build, operate and transfer basis. It has offices in the Indian cities of Nashik, Pune, Mumbai, Delhi, Nagpur and Indore.

The investment was made out of the India Infrastructure Fund, a joint venture between Citi, the Indian government and India’s Infrastructure Development Finance Company (IDFC). The fund, which is targeting $5 billion in equity and debt, held a first close on $875 million in June 2008. It invests broadly in energy, transport infrastructure and telecoms infrastructure.

This March, the fund injected INR3.5 billion ($69 million; €53 million) into power plant operator Essar Power in its maiden investment. 

IDFC Project Equity is a wholly owned subsidiary of IDFC.