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The Odd Couple



                                                              
It’s happening in India .The uncommon is becoming common – The Tata Power shakes hand with ICICI and team up to venture into buying into the stranded Power Assets!!!!. Tata power will take care of O&M where as ICICI will pump funds and plan to raise $750 million of equity initial equity, and that’s why we can call it an unusual collaboration of sorts as ICICI being the India’s one of the largest domestic private equity company in its sector will join hands with Tata Power to wade through the troubled water to pump life in the troubled power plants which are short circulated by the regularity uncertainties like high debt, intermittent fuel supplies and poor demands.

Both the concerns are finalizing and chalking out the common platform with a common mandate to buy out those specific power plants which are disrupted. The division of work is simplified that Tata Power will work in its field of specialization that is of operations and maintenance and post acquisitions where as ICICI will be solely responsible for arranging both the debt as well as the equity funding for all such acquisitions. The name of Tata and Tata Power is the India’s largest integrated power company in the private sector with a vintage heritage presence in the country in the generation, transmission and distribution will use its expertise in making these acquisitions come back on the fast tracks. The finalization of various technical, financial as well as commercial viability details are underway.