India Infrastructure Fund II

South Asia Communications and IT Services, Infrastructure

Mumbai-based IDFC Alternatives Limited is one of India’s largest multi-asset class fund managers.

IDFC Alternatives’ launched its first private equity fund in 2002. It now has a total of three private equity funds – two infrastructure equity funds and one domestic real estate fund.

India Infrastructure Fund 2 (IIF2) was launched in 2013. The fund follows a similar strategy to its predecessor, IIF1, investing in core infrastructure assets across India.

Our investment

In 2013, CDC invested $200 m illion into IIF2. Our commitment, the largest ever to an Indian investment fund, helped IIF2 reach a first close of $644m, and a final close at $850 million. The fund will provide long-term investment for both construction and operating infrastructure projects throughout India.

Expected impact

The infrastructure gap is acute in India. Despite enjoying two decades of rapid economic growth, the country continues to face significant infrastructure shortages. The Indian government estimates that there is an investment shortfall of almost $1.5trn, much of which will need to be met by the private sector.

Our investment will go some way towards meeting the huge demand for new infrastructure, including in some of the poorest states, and drive both direct and indirect employment – the first fund created over 4,000 direct jobs as well as indirect employment for many thousands more.

It will also encourage greater commercial investment in the sector.

CDC backed parent company IDFC’s first India Infrastructure Fund in 2008 with a $100 million investment. The fund has subsequently made 15 investments across the country in businesses including the wind power operator Mytrah Energy, the Vijaywada toll road connecting Kolkata and Chennai and in Karaikal Port Private on the eastern coast.

Environmental and social aspects

We will work closely with the fund manager to develop and implement an action plan and Environmental and Social Management System (ESMS) that has the capacity to manage the higher level of environmental and social (E&S risk) associated with this sector.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Communications and IT Services, Infrastructure
Website:
http://www.idfc.com/alternatives/about/idfc-alternatives.htm
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
IDFC Alternatives (India) Limited
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2013
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$200m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Singapore

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
DB Power Limited India South Asia Infrastructure January 2015 Active
Delhi Cargo Service Centre

Delhi Cargo Service Centre operates and manages of of the two air cargo terminals at Indira Gandhi International Airport in Delhi. In 2009., the company was awarded a 25 year concession to design, construct, operate and manage an international greenfield cargo terminal and to take over the operations of the existing domestic cargo terminal.

View investment details

India South Asia Infrastructure March 2015 Active
ONGC Tripura Power Company Limited (OTPC)

ONGC Tripura Power Company was promoted by the Oil and National Gas Commission to utilise gas reserves found in the state of Tripura and operates a 726.6mw gas based power project.

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India South Asia Infrastructure April 2015 Active
Dewas Bhopal Corridor Private Limited

DBCPL is an SPV incorporated for constructing, financing, operating and maintaining a four laned road. The 141km road is located on SH-18 in the state of Madhya Pradesh and connects two cities in the state - Bhopal and Indore.

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India South Asia Infrastructure December 2015 Active
Bangalore Elevated Private Limited

Bangalore Elevated is a special purpose vehicle operating a toll road on the outskirs of Bangalore. The project is part of the NH-7 connecting Bangalore to Chennai and it's the second longest elevated highway in India. It has 4 toll plazas at the Electronics City section (Bangalore) and 1 toll plaza at Attibele.

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India South Asia Infrastructure October 2016 Active
Godhra Expressways Private Limited India South Asia Infrastructure February 2017 Active
Vector Green Energy Private Limited India South Asia Infrastructure February 2017 Active
Ascend Telecom Infrastructure Pvt Ltd

Aster Infrastructure (AIPL) leases telecom infrastructure for the mobile services and wireless sector in India. AIPL also provides value added services to telecom operators like specialized site acquisition, project management and soil testing services.

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India South Asia Communications and IT Services March 2017 Active
Jodhpur Pali Expressway Limited India South Asia Infrastructure March 2017 Active
Shillong Expressway Limited India South Asia Infrastructure March 2017 Active
Vector Green Sunshine Limited (Punj Lloyd Solar) India South Asia Infrastructure June 2017 Active
First Solar (Mahbubnagar & Polepally) India South Asia Infrastructure December 2017 Active