New Delhi, May 11 -- Infrastructure-focussed private equity firm I Squared Capital is preparing to launch a dedicated power transmission platform in India, according to several industry executives, expanding its already significant footprint in the country's roads, renewables and smart metering sectors.
At least three senior executives, an investment banker, a top transmission industry executive and a renewable energy veteran, familiar with the matter said the firm may have already registered the vehicle and could be close to a formal announcement.
They declined to be identified.
However, it remains unclear whether the platform will directly own assets or take the form of an infrastructure investment trust (InvIT).
A spokesperson for I Squared declined to comment. Messages sent to at least four top executives at the PE firm also remained unanswered till the time of publishing this article.
If launched, the transmission platform would mark a further deepening of the Miami-based firm's commitment to Indian infrastructure.
I Squared has been active in India for over a decade, primarily through platform investments that it scales over time.
Its flagship highway platform, Cube Highways (and the associated Cube InvIT), has assembled one of India's largest portfolios of toll roads, spanning thousands of lane kilometres.
Initially backed alongside the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, Cube has since attracted additional capital from investors such as Abu Dhabi Investment Authority (ADIA). I Squared has been monetizing portions of its stake in recent times even as the InvIT eyes broader public market options.
In renewables, I Squared has backed Hexa Climate Solutions (and related Hexa Renewables entities). In 2025, Hexa acquired Finland-based Fortum's India renewables business, including a 206 MW operating portfolio and a 600 MW pipeline, with plans to deploy around $500 million across clean energy platforms in India and other emerging markets.
The firm also owns a controlling stake in Polaris Smart Metering, in which it invested around $150 million in 2023. Polaris has secured major contracts for smart meter rollouts, including large orders in Uttar Pradesh, as India pushes advanced metering infrastructure.
I Squared is now exploring an exit from Polaris.
A transmission platform would complement these holdings by targeting a sector critical to India's energy transition. The country needs massive grid expansion and modernization to integrate rising renewable capacity, handle growing demand from data centres and industry, and improve reliability. Transmission assets typically offer stable, regulated returns, making them attractive for infrastructure investors.
Growing competition in transmission
India's transmission sector has already drawn significant interest from private equity, pension funds and strategic players, often through InvIT structures that allow monetization and capital recycling.
Listed power sector InvIT IndiGrid, originally sponsored by leading private transmission developer Sterlite Power, is now anchored by marquee foreign investors, including KKR and Singapore sovereign wealth fund GIC. It has grown into a diversified portfolio with dozens of transmission lines, substations, solar assets and battery storage projects, providing predictable yields for unit-holders.
In 2024, Sterlite Power formed a joint venture with GIC to create a new platform for developing and operating transmission projects. Sterlite holds the majority 51% stake, while GIC owns 49%. This structure allows Sterlite to combine development expertise with long-term patient capital.
State-owned Power Grid Corporation of India also has its own listed InvIT, called PGInvIT, focused on transmission assets, offering another route for institutional capital into the sector.
Foreign pension funds and sovereign wealth entities have shown strong appetite for such yield-generating Indian infrastructure, drawn by long-duration cash flows backed by regulated tariffs. Other global players and PE firms have also eyed transmission and related utilities.
I Squared's potential entry would add to this ecosystem, leveraging its platform-building track record and existing relationships in Indian infrastructure. The firm manages tens of billions in assets globally, with a focus on energy, utilities and transport, and has raised substantial capital in recent funds.
India's transmission sector is poised for growth amid ambitious renewable targets and electrification drives, but challenges remain around land acquisition, execution timelines and evolving regulatory frameworks.
Published by HT Digital Content Services with permission from VC Circle.