US hedge fund plans to invest Rs 500 cr in hydropower cos

NEW DELHI: US hedge fund Wexford Capital LP is looking to buy equity stakes in Indian hydroelectric power generation companies and has chalked out a plan to invest Rs 500 crore in the country. The fund house will make investments through its wholly-owned subsidiary, Indus Renewable Energy India. At present, Indus Renewable Energy does not have any operations or any downstream investment.

A person familiar with Wexford���s expansion plans in India said Indus Renewable Energy has already sought approval from foreign investment promotion board(FIPB) to make investment.

Wexford Capital LP is an investment advisor with over $5 billion of assets under management. The firm, which was formed in 1994, manages a series of hedge funds and private equity funds.

Hydro power accounts for a quarter of India���s total power generation of about 1.5 lakh mw and is yet to be harnessed fully. It is estimated that the country���s hydro power potential is around 1.5 lakh mw, of which 72% still remains to be developed.

Given that over the last few years there has not been much progress in development of hydro power projects, the government had sometime back come up with a fresh policy which provides incentives to initiate development of hydroelectric power and thereby reduce dependence on thermal or coal backed-power projects for the electricity requirements of the country.

National Hydroelectric Power Corporation and private sector infrastructure group Jaiprakash are among large players in hydro power generation in India. Others such as GMR, Lanco and Bhilwara groups are also in the process of building hydro power capacity.