Singapore-based Temasek Holdings on Friday said GMR Energy Ltd (GEL) has signed an agreement with it to raise capital for energy expansion plans. Temasek Holdings would invest $200 million (about Rs 880 crore) through its wholly-owned subsidiary Claymore Investments (Mauritius) Pte, the company said in a statement here.
The investment would be through a structured paper compulsorily convertible into equity. “The energy sector within the infrastructure space is an attractive long-term investment area. India may have historically lagged behind in adding new generation capacity; we believe that enabling regulations and private sector participation will allow the sector to add substantially to India’s GDP growth rate,” Temasek Holdings India head Manish Kejriwal said
“This relationship will be a mutually gratifying experience for both the parties,” GMR Group chairman G M Rao said. GEL plans to enhance its installed power generation capacity from the current 808 MW to more than 6,500 MW over the next 3-4 years, thus necessitating significant capital investment to fund its expansion plans in the energy business.
Source: Indian Express