Old Lane invests $26mn in Hyd firm

Old Lane Mauritius III Limited, an investment vehicle of Old Lane India Opportunities Funds, has invested $26 million (around Rs 104 crore) in Hyderabad-based KVK Energy's flagship company "" KVK Energy and Infrastructure Private Limited.

The investment by Old Lane in KVK Energy and Infrastructure will primarily help fund the latter's projects including the 1,200Mw KVK Nilachal power project in Orissa, a project being monitored by the Inter Institutional Group (IIG) set up by the ministry of power, and the 120Mw SV power project in Chhattisgarh.

KVK Group, operating across conventional as well as renewable sources such as natural gas, LSHS, coal, biomass and hydro power, currently owns stakes in 9 power generation projects spread across 6 states.

The Old Lane India Opportunities Funds were established in July 2006, and are sized at $518 million with a 10-year life. These funds are dedicated for long-term investment opportunities in India, primarily in the infrastructure and real estate sectors.

"This large investment from Old Lane represents the successful culmination of over a decade of KVK Energy's efforts to develop a diversified portfolio of power assets. KVK Energy also has plans to go for listing at reputed overseas stock exchanges to raise resources to fund immediate growth opportunities in the sector," K Vijaya Kumar, chairman, KVK Energy and Infrastructure.