Current Portfolio

Shree Maheshwar Hydel Power Corporation Limited

The Group has invested Rs1.1 billion (approximately £13 million) in Shree Maheshwar Hydel Power Corporation Limited (SMHPCL), a company established to solely own and develop a 400MW hydroelectric power project situated in the south western region of Madhya Pradesh in India.

The Shree Maheshwar Project is part of the Narmada Valley Development Project which comprises the construction of 29 large and 135 medium-sized hydroelectric projects in the Narmada Valley. The Shree Maheshwar Project is a 400MW (10 turbines of 40MW each) run-of-the-river project. It is now approaching the final stages of construction with the first turbine currently on site undergoing installation. The estimated project cost is approximately Rs.26.7 billion (approximately £324 million).

Western MP Infrastructure and Toll Roads Private Limited

The Group also invested £11.3 million (Rs 960m) in a toll road in Central India, representing a 26% shareholding in the project company, Western MP Infrastructure Toll Roads Private Limited (WMPITRL). The toll road project comprises the development of a single 125 km stretch of highway to be widened and improved to reduce congestion experienced on the route and to provide further scope for traffic growth. The project is now effectively complete except for continuing work on two bridges crossing a busy railway.  While tolling operations were originally anticipated to commence around April 2010, partial tolling on the first half of the road actually began several months ahead of schedule.  As soon as the remaining work on the bridges is completed, the second half of the road will also begin tolling - this is currently scheduled for the first quarter of 2011. 
 
There have been a number of variations to the project specification of the road, in particular in relation to the railway bridges.  In respect of the marginal cost overrun in the project (which was expected at the time of the initial investment), the Group contributed a further £881,000 in October 2009 and approximately £360,000 in June 2010, to maintain its 26% shareholding in the asset.

India Hydropower Development Company, LLC (IHDC)

The Group acquired a 50% interest in IHDC through the issue of ordinary shares with an implied aggregate value of £24.8 million.  IHDC’s primary business is the ownership and operation of hydroelectric power plants in India and its asset base consists of existing hydroelectric power generation assets, the right to implement additional hydroelectric power capacity in several states in India, and an established operating infrastructure capable of supporting such projects. The focus on smaller hydroelectric power plants in India means that the relevant PPA tariff is generally established by the relevant state government through a promotional policy for small hydroelectric power projects, which is intended to streamline and simplify the development and operations of small-scale renewable power assets.

IHDC has a proven track record in respect of hydroelectric power plants in India and, to date, operates two hydroelectric plants totalling up to 48MW of capacity, it also has developed, completed and operates two greenfield projects totalling 7MW of capacity and has a further four hydro power projects under construction/development, totalling up to 29MW of capacity including Raura at enhanced capacity. In addition, IHDC has a pipeline of identified projects for future development.

Vikram Logistic and Maritime Services Limited (VLMS)

The Group acquired an approximately 99,99% interest in VLMS through the issue of ordinary shares with an implied aggregate value of £ 93.1 million.

VLMS is a supply chain transportation and container infrastructure company with a strong presence in Southern India and which is developing two Free Trade Warehousing Zone (FTWZ) bonded container warehouse facilities.

VLMS has, amongst other sites, already developed a Container Freight Stations (CFS ) at Hassan for loading and unloading containerised cargo which is fully operational and a key focus of the group is to develop two FTWZ bonded container warehouse facilities, one in Bangalore and one in Chennai . The proposed FTWZ to be developed in Bangalore is over a 105 acre site which is located within 10 km of Electronics City in Bangalore, while the proposed FTWZ to be developed in Chennai is also over a 105 acre site, located between the ports of Chennai and Ennore.

Indian Energy Limited (IEL)

The Group acquired a 100% interest in IEL, an independent power producer focused on wind farms in India, which currently owns and operates 41.3 MW across two wind farms. The Gadag Project is a 24.8 MW wind farm situated in Karnataka, now in its third full year of operation, supplying power to the Bangalore Electricity Supply Company under a 20 year power purchase agreement. The Gadag Project is registered as a Clean Development Mechanism under the Kyoto Protocol and is earning Certified Emission Reductions. The Theni Project, a 16.5 MW wind farm, was fully commissioned on 13 August 2010 and its power is being sold to the Tamil Nadu Electricity Board under a 20 year power purchase agreement. In addition, the project is also being established as a Clean Development Mechanism.