India Power Fund � a power sector venture capital fund to be promoted by Power Finance Corporation (PFC) � has remained a non-starter even after two years of its announcement. Meanwhile, a number of private equity funds are gearing up to grab a slice of the estimated $100-billion (Rs 4,50,000 crore) investment pie for the power sector in the Eleventh Five-Year Plan. Investments are required for generation of 68,000 megawatt additional power and expansion in the transmission and distribution segments.
In February 2004, the power ministry said India Power Fund would be formed under the aegis of PFC to meet the shortfall of equity needs for the power sector. PFC, with an initial commitment of Rs 200 crore, would promote and incorporate India Power Fund Asset Management Company Ltd to manage the fund. India Power Fund would pick up minor stakes between 5 and 10 per cent in each power projects.
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