US co launches $12-bn power, infrastructure fund

Private equity firm Clear Trade is in talks with 10 global entities to sell a 25 per cent stake in its newly-launched $12 billion fund.

The fund -- Clear Investments Power Infrastructure Fund -- would invest in Indian power and infrastructure projects.

It would start with an initial corpus of $1 billion, which would be increased to $12 billion by 2012.

The fund would be promoted by three partners - Deepak Kavadia, Palak Jain, and Philip Ho, Managing Director of US-based private equity fund Cornell Capital.

The promoters would own 75 per stake in the firm. "We are in talks with 10 large players at global scale.

However, we don't want to comment unless we close a deal with two of them," Jain said.

She said the fund, which proposes to participate in projects related to power, airports, bridges and hospitality, would begin operations from April 1.

"There is a requirement of $250 billion by 2012

in the power sector alone," Jain said.

Clear Investments Power Infrastructure Fund has identified 11 power projects -- of which eight would be run on coal, two hydro and one on agro-waste. Jain said two of them are captive power generating projects of over 1,000 MW in capacity.

The fund also plans to form consortia with domestic players in power sector to bid for the upcoming 4,000 MW ultra mega power projects (UMPPs). The government has identified nine UMPPs, of which three have already been awarded.

Of the balance six, at least two projects, including one in Karnataka would be auctioned this year.