3i Group invests $161 Million in Krishnapatnam port
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Hyderabad: 3i India Infrastructure Fund, managed by 3i Group, a global private equity firm will invest $161 million (Rs800 Crore) for an undisclosed share in Hyderabad-based CVR Group formed Krishnapatnam Port company (KPCL), the developer and operator of the Krishnapatnam port in Andhra Pradesh. KPCL has got a 30 -year concession that can be extended up to 50 years for the project. Refusing to disclose the size of 3i's stake in PKCL, Chinta Visweswara Rao, Chairman CVR Group said it was a non-disclosure agreement. "We are expecting to achieve financial closure for the port project in the next fortnight or so," said Rao. On the deal 3i's Asia Head, Anil Ahuja pointed out that the company did not deviate from its investment commitment of some Rs 800 crore in the port company from day one of initial discussions. However, it has slightly increased the minority holding in the port company for the same amount by the time of final agreement. For 3i Group, it is the third investment in the Indian infrastructure segment. Earlier, the group had invested $227 million in Adani Power in September and $101 million in Soma Enterprises in December 2007. "The India Infrastructure Fund, which has invested some $500 million so far including KPCL, is still left with some $700 million of cash. We expect to complete these investments in three key Indian infrastructure segments that include power, ports and roads by 2010-end," mentioned Ahuja.
Source: IANS
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