PTC, Ashmore launch fund for power projects

Power trading company PTC has launched a fund in collaboration with leading global investment manager Ashmore to provide equity financing to various kinds of power projects in India.

The fund, PTC Ashmore India Energy Infrastructure Fund, will give equity funding to projects across the spectrum of activities in the power sector, like generation, transmission, distribution, fuel extraction and fuel transport infrastructure.

As a way of meeting the widening demand-supply gap in India, the fund will target the private sector to lead the initial investments and exit once assets mature.

In order to secure various exit channels, the portfolio will contain an optimum mix of holding and asset companies.

The closed-ended fund will offer a target return of 20 per cent with 10 years' maturity, and is aimed at local and international investors.

PTC India CMD T N Thakur said, "According to the latest estimates, the Indian power market needs funding of USD 600 billion over a seven-year period, which provides a significant opportunity for private equity to lead the initial investments."

Jerome Booth, Head of Research at Ashmore, said India is expected to be the third largest electricity market globally by 2030.

"We believe the Indian energy market, characterised by a lack of capital, rising demand and a strong and non-discriminatory regulatory framework, presents a compelling investment opportunity," he said.

Britain-based Ashmore Investment Management Limited is one of the world's leading investment managers dedicated to emerging markets.