Europe’s largest publicly traded buyout and venture capital company, 3i Group Plc has purchased 8 percent stake in Adani Power Ltd., for around Rs 900 crore.

Adani Power Ltd is a fully owned arm of Adani Enterprise Ltd and a member of Ahmedabad-based Adani Group.

3i has made the recent buyout in Adani Power through its division ‘3i IIF GP Ltd’ that was constituted in association with India Infrastructure Finance Company Ltd. (IIFCL) last April.

At present, Adani Power is carrying out a 1,320-MW (4X330 MW) coal-based power plant at Mundra, where Adani Enterprise is planning to build a port-based Special Economic Zone (SEZ). It is planning another plant of similar size at the same location.

The company informed that the project introduced in June 2006, is projected to be operable within next two years (2009), and attain its full capacity by 2010. The total cost of the 2,640-MW project is calculated to be more than Rs 100 billion.

Recently, the company has got the turnkey agreement for constructing the second phase of the power plant to Shandong Electric Power Corporation of China.

3i Asia’s MD % co-head, Anil Ahuja, said, “India is witnessing phenomenal growth in the power sector, specifically power generation. Through this transaction, we have invested in a landmark power generation asset as well as reaffirmed our confidence in the Adani Group, whose Mundra Port was backed by us in 2005.”

Gautam Adani, Chairman of Adani Group said, “We are planning to generate close to 7,500 MW of power in India by 2015. Towards this, we have already firmed up 2,640 MW project at Mundra and have commenced work for another 2,000 MW phased project at Tiroda in Maharashtra. We see 3i as a committed partner who adds value to our business.”