Business Daily from THE HINDU group of publications
Thursday, Nov 30, 2006

Cross Currency

Group Sites

Money & Banking - Alliances & Joint Ventures
Industry & Economy - Power
Web Extras - Financial Institutions
Abu Dhabi company to lend $1 b for power projects

Our Bureau

Infrastructure Leasing signs framework pact with TAQA

"IL&FS will identify projects in the country and TAQA will bring in the necessary funds to develop the projects"

FUNDING TIE-UP: Mr Ravi Parthasarathy (left), Chairman, IL&FS, exchanging documents with Mr Peter Barker Homek, CEO, TAQA, after signing an agreement in the presence of the Power Minister, Mr Sushil Kumar Shinde, in the Capital on Wednesday. — Kamal Narang

New Delhi , Nov. 29

Infrastructure Leasing & Financial Services Ltd (IL&FS) and Abu Dhabi National Energy Co or TAQA on Wednesday signed a Framework Agreement for joint development, financing and implementation of energy sector projects with associated transmission systems.

According to the agreement, TAQA could commit up to $1 billion in select IL&FS-assisted power and transmission projects through a special purpose vehicle.

It was signed by the IL&FS Chairman, Mr Ravi Parthasarathy. and the TAQA CEO, Mr Peter Barker Homek, in the presence of the Union Power Minister, Mr Sushil Kumar Shinde. "IL&FS will identify projects in the country and TAQA will bring in the necessary funds to develop the projects," Mr Parthasarathy said.

IL&FS is currently involved as developer and advisor in power generation projects with an aggregate generation capacity of around 6,400 MW in the country. It had earlier executed an agreement with India Infrastructure Financing Company in order to raise resources of Rs 6,000 crore to finance the senior debt requirements of IL&FS-assisted power projects.

The company now hopes to take up each project and take them to financial close at a faster pace with TAQA partnership.

"The first project we are taking up is the 750 MW gas-based power project in Tripura being implemented with ONGC as a partner and we expect to tie up for the necessary funds by March next year," Mr Parthasarathy said.

These projects would require significant equity capital and the partnership potential with TAQA is a lead initiative to mobilise equity funds for these projects, he said.

TAQA is a subsidiary of Abu Dhabi Water and Electricity Authority, a wholly owned company of the Government of Abu Dhabi. It has an asset base of more than $8.69 billion in the energy and water sectors.

Abu Dhabi Investment Authority, the principal vehicle of the Government of Abu Dhabi, had recently contracted to take a 12.5 per cent equity stake in IL&FS.

TAQA's entry into the Indian power sector comes at a time when the country has set a target of adding around 70,000 MW of generation capacity over the next five years to eliminate peak time deficits, estimated at 12 per cent. This would increase overall generation capacity to 2-lakh MW by the year 2012.

More Stories on : Alliances & Joint Ventures | Power | Financial Institutions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Govt hopes to get Pension Bill passed

Dollar-commodity linkage turning tenuous
Rupee flat against dollar
Banks shift gear, move to long-dated securities
ICICI Bank in talks with ISPs on hiring format
Interim dividend cheque handed over
Bond prices fall on profit-booking
T-bills fully subscribed
Call rates remain the same
SIB to launch co-branded Citi credit card
Kotak Bank plans overseas expansion
Abu Dhabi company to lend $1 b for power projects
`Competitiveness key factor for success of a bank'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line