Tata Power to buy 25% stake in Resurgent Power for USD300 million

India: Tata Power Ltd, India's largest private power producer, will purchase 25% of Resurgent Power for $300 million. Resurgent Power is mainly engaged in purchase of coal-fired and hydro power assets in India. Resurgent Power is founded by a consortium of two sovereign funds from Middle East, an overseas pension fund from Canada and local private equity fund ICICI Ventures. Kuwait Investment Authority, or KIA, Oman State General Reserve Fund, or OSGRF, Canadian pension fund Caisse de depot placement du Quebec, or CDPQ and local private equity fund ICICI Ventures own the consortium.

TechSci Research depicts that India has been witnessing a significant rise in investment by global sovereign and pension funds. These capital infusions will help in augmentation of power generation, distribution and transmission capacity in India. Government of India has taken up various initiatives including Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for electrification of rural pockets of India, which has spurred significant investments in the country’s power sector. 

According to TechSci Research report, “India Power & Distribution Transformers Market Forecast & Opportunities, 2020” the power distribution and 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. One of the major developments underway includes the country’s shift from 765 kV to 1200 kV power transmission.