Mumbai: GMR Infrastructure Ltd said the GMR Group has agreed to buy out a Singapore-based private electric utlity, Island Power, which is developing an 800-megawatt power plant in the island-state.
The Indian firm has signed an agreement with power producer Intergen NV to acquire the latter’s 100% stake in Island Power.
Island Power’s proposed plant, to be fired by natural gas, is expected to be operational by 2013.
The project will fetch about $1.5 billion in foreign direct investment into Singapore, GMR said in a statement on Friday.
The GMR Group had already gained an indirect interest in Island Power through its 50% acquisition of Intergen in June last year. The new deal will enable GMR to enter the South East Asian energy market, it said.
“We believe that the energy demand in Singapore and the wider region will see growth in the long run, especially as the global economy recovers, the Bangalore-based firm added.
Shares of GMR Infra were up 2.55% at Rs166.85 in a firm Mumbai market.