New Delhi, March 12 -- The government-backed National Investment and Infrastructure Fund (NIIF) has partnered with an engineering and construction company that's part of the Bajaj Group for a power transmission development platform.
NIIF has teamed up with Bajel Projects Ltd, an engineering, procurement and construction (EPC) firm that focuses on the power transmission and distribution sector, according to a press release.
The collaboration also involves AnantGrid Pvt Ltd, a power transmission company that NIIF set up in September last year to invest in power transmission assets. The platform will focus on bidding for and developing power transmission assets under the country's tariff-based competitive bidding (TBCB) framework.
Under the proposed framework, Bajel will take a 26% equity stake in the selected projects and NIIF will hold the balance 74%. No financial details of the new arrangement were, however, disclosed.
Under the framework, the partners aim to participate in power transmission opportunities emerging from the Indian government's push for grid modernisation, renewable energy expansion and increased private sector participation. The arrangement combines long-term institutional capital from NIIF with technical and execution capabilities from Bajel Projects along with business development by AnantGrid.
The power transmission sector is experiencing strong momentum as India pursues its goal of 500 GW of non-fossil fuel capacity by 2030, which requires significant new transmission infrastructure to evacuate renewable power and enhance grid reliability.
NIIF, India's sovereign-anchored alternative asset manager, was established in 2015 with backing from the government in partnership with global institutions. It manages more than $5 billion in equity commitments across its infrastructure, private markets, growth equity and climate investment strategies.
The firm aims to nearly double its assets under management to around $10 billion in the next two to three years through successor funds, including a larger infrastructure-focused vehicle.
NIIF recently secured commitments of up to $750 million for its Private Markets Fund II, a successor vehicle targeting third-party growth equity and venture capital funds with flexibility for direct co-investments, focused on sectors including energy transition, healthcare, manufacturing, technology and financial inclusion.
Published by HT Digital Content Services with permission from VC Circle.