Indian infrastructure company, GMR Infrastructure is going to receive as much as $200 million as investment from Singapore's Temasek Holdings.

The agreement was reached on Friday and the Singaporean state investor is going to put this money into the power business of GMR. With this, it will expand its generation capacity as well.

Temasek has taken this decision looking at the huge potential and relatively very less competition in the Indian power sector.

No details, however, about the total stake sale was revealed. But as per the available reports, Temasek will be subscribing to the compulsorily convertible securities of GMR Energy Ltd (GEL).

GMR Energy is the fully owned subsidiary of GMR Group.

GMR has the installed capacity of 808 megawatt and has several projects going on with their operations at advanced stages.

Talking about the investment, GMR said in a statement that GEL is looking forward to increase its installed capacity by 6,500 MW. This is going to happen in the next three to four years' time. For such a plan, it needs huge capital investment which will come through this route.

India currently has peak power shortage of 12 per cent.