Temasek to invest $200-mn in GMR Energy

MUMBAI: Singapore-based Temasek Holdings, on Friday said that GMR Rnergy Limited (GEL) has signed a shareholders agreement with it to raise capital for energy expansion plans.

Temasek Holdings would invest $200-million through its wholly-owned subsidiary Claymore Investments (Mauritius) Pte, the company said in a statement here.

The investment would be through a structured paper compulsorily convertible into equity.

"The energy sector within the infrastructure space is an attractive long-term investment area. India may have historically lagged behind in adding new generation capacity; we believe that enabling regulations and private sector participation will allow the sector to add substantially to India's GDP growth rate," Temasek Holdings India Head, Manish Kejriwal, said

This relationship will be a mutually gratifying experience for both parties, GMR Group Chairman G M Rao, said.

GEL plans to enhance its installed power generation capacity from the current 808 MW to more than 6,500 MW over the next 3-4 years, thus necessitating significant capital investment to fund its expansion plans in the energy business.

The company has already achieved financial closure and achieved fuel linkages for GMR Kamalanga (1,050 MW) and Emco Energy (600 MW).

The GMR group is a Bangalore-headquartered infrastructure major with interests in airports, energy, highways and urban infrastructure.