Tata Power and ICICI Venture to collaborate in terms of joint investment platform

The joint investment program would surge the investment in Power projects in India

India: Tata Power and ICICI Venture plans decided to opt for joint investment platform in association with Canadian pension fund Caisse de depot et placement du Quebec (CDPQ), State General Reserve Fund of Oman (SGRF) and Kuwait Investment Authority. The objective of the platform is to invest in power projects across India with initial fund of USD850 million. The investment program would invest in stressed power generation and transmission companies make the projects financially viable. This investment mechanism would ensure the development and modernization of power infrastructure in the country.

TechSci Research depicts that the joint investment mechanism by Tata Power and ICICI Venture would result in increased investment in power evacuation Infrastructure. A lot of Power transmission and Distribution utilities in India are non-profitable due to their inefficiency. The investment program would result in modernization of power infrastructure in the country. This would result in fresh demand for power transmission and distribution transformers needed to revitalize the stressed power generation and distribution projects. As a result, the India power & distribution transformer market would witness a major boost.

According to a recent released report of TechSci Research, “India Power & Distribution Transformers Market Forecast & Opportunities, 2020”, the power and distribution transformers market in India is projected to grow at a CAGR of over 10% till 2020. Power transformers contribute a major portion in overall market revenues due to their higher price points. Under the 12thfive year plan (2012-2017), Indian government allocated US$ 200 billion for strengthening the country’s power generation, transmission and distribution sector.