US private equity firm Blackstone Advisors will pump in around $300 million (R1,350 crore) in Moser Baer Projects Pvt Ltd (MBPPL) as part of its plans to invest in India's power sector companies. Blackstone will pick up a significant minority stake in the company with this investment.
Deepak Puri and Ratul Puri, the promoters of Moser Baer India Ltd that manufactures compact discs, own Moser Baer Projects which is developing power assets using conventional and non-conventional sources of energy.
"We have been studying the Indian power sector for over a year and are excited to partner with Moser Baer," said Akhil Gupta, chairman and managing director of Blackstone Advisors. Gupta said the firm is also in talks with other power players for fresh investments. "We might invest up to $1 billion in India's power sector over the next five years."
Blackstone had, last month, picked up a 12.5 per cent stake in Monnet Power Company for an investment of around $59 million.
Moser Baer Projects plans to develop a capacity for 5,000 MW power by 2016 at an estimated investment of R30,000 crore. The installed capacity would include 4,000 MW thermal, 500 MW hydro and 500 MW solar power plants.
The company expects a large chunk of these funds to come through a mix of debt and private equity while remaining through contributions by founding members.