Essar Power raises Rs 350 cr equity funding from IDFC

Essar Power has raised an equity investment of Rs 350 crore from Infrastructure Development Finance Co (IDFC) for partly funding its ongoing projects.

"This investment by IFDC clearly indicates that projects with strong business fundamentals can still attract investment even during these challenging times," Director Essar Group Anshuman Ruia said in a statement.

The funding was done through IDFC Projects Equity, the country's leading infrastructure equity investment manager.

Commenting on the transaction, IDFC Project Equity President and CEO M K Sinha said, "We find the power sector attractive. We are delighted to partner with a strong and credible group like Essar."

This is the first investment made by IDFC Project Equity since the initial closing of the India Infrastructure Fund managed by it in June 2008.

Essar Power, part of Ruia family-promoted Essar group, currently operates three power plants, two in Hazira with generating capacity of 515 Mw and 500 Mw each and one in Vadinar with a production capacity of 125 Mw.

The company is currently implementing four other power projects.

All the projects are scheduled to be completed in the next three years, taking the company's total capacity to 6,000 Mw.