GLOBAL - Infrastructure India (IIP), a significant investor in roads, ports and renewable energy, is to expand its portfolio despite ongoing challenges in a market dominated by uncertainty.
Posting preliminary results on Thursday, IIP also announced the acquisition of Indian Energy, a listed developer and operator of Indian wind energy projects.
In a statement, chairman Tom Tribone said: "The combination of an operating wind portfolio that is cash generative, a strong management team and the ability to further scale the business make the business an attractive platform for IIP."
A recent deal with Guggenheim Global Infrastructure Company (GGIC) injected significant hydroelectric, logistics and port facilities into Infrastructure India. Under the terms of the agreement, GGIC will manage the firm's assets.
Tribone said the GGIC deal had been necessary to provide scale and diversification.
Following a recent fundraising round that generated £33m (€37.4bn), he said the firm was looking to deploy capital "as soon as possible" in transport, energy and close-to-operation development projects.
However, he also pointed to significant challenges in a market characterised by difficulties acquiring land and regulatory uncertainty.
Despite a government commitment to invest $500bn (€349bn) in the country's infrastructure by the end of next year, and a call for $150bn in private-sector investment by 2017, investors face what IIP described as "a rapidly changing environment" - a euphemism for volatile political considerations that often hamper projects instigated by especially overseas investors.
Roads and ports have to date accounted for the bulk of investments in the government's five-year plan, at $21.1bn and $13.8bn, respectively.
Tribone noted that delays and cost overruns are common because of "changes in regulation, financing conditions, political conditions and tomography, among numerous other factors".
He said the firm would continue to price those risks prudently.
India's Foreign Investment Promotion Board in May rejected IIP's petition to acquire a 62% stake in wind farm operator VLMS via a share swap.
An appeal against the decision is likely to be heard next month.