Current Portfolio

First Investment – Hydroelectric Power Project in Madhya Pradesh

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).

Second Investment - 125km Toll Road in Central India

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 M P Infrastructure Toll Roads 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 towards the end of September 2010. 
 
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.