The AMP Capital Asian Giants Infrastructure Fund (AGIF) has acquired a significant minority stake in leading clean energy company Shalivahana Green Energy Limited (SGEL) for almost US$29 million.
Based in Hyderabad India, SGEL develops, owns and operates a portfolio of power generation assets across the agri-waste, hydro and wind sectors.
AMP Capital’s Head of Infrastructure Asia Anoop Seth said SGEL has a unique portfolio having both geographical and fuel diversification, positioning it as a leading renewable energy company in India.
“SGEL has an operating capacity of 80 megawatt (MW) with another 45 MW to be completed in the next six months. In addition, it has a pipeline of 300 MW, which includes 60 MW of small hydro projects,” Mr Seth said.
As part of AMP Capital’s investment in SGEL, two members of AMP Capital’s investment team will join the SGEL board.
Existing investors in SGEL include International Finance Corporation and Infrastructure Leasing and Financial Services Group, India’s leading infrastructure player.
Mr Seth said renewable energy generation in India has benefited from a favourable regulatory environment.
“Since 2002, renewable grid capacity as a percentage of total capacity has increased by almost four times. India has over 21 gigawatts (GW) of grid connected renewable energy sources of which wind dominates with almost 15 GW of installed capacity,” he said.
AGIF targets growth oriented infrastructure investments in India and China in sectors such as transportation, energy/utilities, telecommunications and urban infrastructure.
The US$161 million Fund holds investments in a gas distribution franchise in China, a road developer in
India and a telecommunications infrastructure company in India.