Private equity firm Blackstone Group said on Thursday it would pay 2.75 billion rupees ($59 million) for a 12.5 per cent stake in power producer Monnet Power Company Ltd, a wholly owned unit of India's Monnet Ispat & Energy.
Monnet Power is developing a 1,050 mega watt coal-fired power plant in the eastern state of Orissa with plans to develop another 2,000 MW, the companies said.
Monnet Ispat is India's second-largest maker of integrated coal-based sponge iron.
"We will be able to utilise our experience in setting up power plants and developing mines, while leveraging Blackstone's global linkages and knowledge base," Executive Vice Chairman and Managing Director of Monnet Ispat, Sandeep Jajodia said in a statement. Kotak Investment Bank was the sole financial advisor to Monnet.