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Abu Dhabi Investment Company to set apart $1 billion for India-target power and renewable energy

As Panchabuta has earlier discussed, most of the fund-raising in Renewable Energy and Cleantech in India is happening in mega project developments.

 There again, there are two different trends that are emerging. One is the funding of green power developers like Orient Green Power Limited, AuroMira Energy etc.

There are also domain specific IPP’s emerging like Azure Power in Solar, Wind farm IPP developers like Caparo Energy and a number of Small Hydro focused developers.

Panchabuta has talked about this trend in detail with the  recent funding of  Kiran Energy- Solar PV focused developer–  that is said to have received a  funding of about $30 million, AllGreen Energy raising  Series A from Reliance Venture Asset Management and General Electric affiliate.

A couple of days ago, Mr. Kameswara Rao, Leader- Energy and Utilities, PwC India said that resource consolidation and reallocation is  taking place in the renewable energy space in India with deals involving wind, hydro and biomass. He further added, “We are at a critical point now and the course of renewable regulations, especially with regard to mandatory procurement obligations and activation of the REC market will significantly determine market activity.”

According to reports, Abu Dhabi Investment Company, the sovereign wealth fund of the United Arab Emirates with an estimated $650-875 billion in assets, is looking to enter the private equity space in India, said sources. The company is in the process of roping in BDO India, part of the world’s fifth-largest accounting network, for its India entry.

According to experts, the firm will set apart $1 billion for India, which will primarily target the infrastructure sector, especially power and renewable energy.

“Being a very large sovereign fund with hundreds of billions of dollars in assets, it would look at longer span of investments of 10-12 years before seeking an exit option, unlike other funds which may look at an exit in 5-6 years. Infrastructure projects, with their long gestation periods, are thus well-suited for such investment,” a source said. The firm is currently in discussions with consultants from BDO — which has offices in West Asia — to chalk out a road map for entering the country.

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