Bridging Gulf: TAQA to invest $1b in IL&FS power projects

NEW DELHI: The Abu Dhabi National Energy Company (TAQA) has decided to pump in $1 billion in equity for IL&FS-promoted domestic investment projects in power sector.

The investment is a follow-up to the picking up of 12.5% stake in IL&FS by Abu Dhabi Investment Authority. The equity funding will finance special purpose vehicles the infrastructure company will be setting up to finance power generation and transmission projects.

Secretary of financial sector, Vinod Rai said such investments in equity was necessary to make for a viable power sector. TAQA is a subsidiary of the Abu Dhabi Water and Electricity Authority, a company wholly-owned by the UAE government.

The latter has a 51% stake in it. IL&FS had earlier signed a framework agreement with IIFCL to debt finance of Rs 6,000 crore to finance power projects. Wednesday’s agreement will supply the equity component for the projects, said IL&FS chairman Ravi Parthasarathy.

The company is developing and advising on power generation projects of 6,000 MW. TAQA has been positioned by the Abu Dhabi government as a primary conduit for its strategic investments in the global energy sector.