http://pepei.pennnet.com/Articles/Article_Display.cfm?Section=ONART&PUBLICATION_ID=6&ARTICLE_ID=336855&C=INDUS&dcmp=rssCredit crunch hits Indian power investment plans
13 August 2008 - Indian power companies are expected to delay billions of dollars of investment plans because depressed global markets are making it hard for them to raise the necessary financing, according to a new report cited by the Financial Times.
The Financial Times writes that investment plans totalling at least $10bn - including $4bn in equity and the remainder in debt - are facing delays, meaning that India could fall well short of an ambitious plan to add about 90 GW to its existing power-generating capacity of 145 GW by the end of 2012, the report from London-listed brokerage Arden Partners said.
Those companies affected could include Adani Power, a company with investment from the UK's 3i Group which has filed a prospectus for an initial public offering expected to raise between $1bn to $1.5bn, and JSW Energy, which had been looking to raise a similar amount.
"We had thought the market might be headed towards oversupply but the credit crunch has removed the bubble," said Guy Brown, engineering analyst with Arden Partners, a London-listed brokerage and research house.
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