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Ashmore Plans $750 Million Indian Energy Infrastructure Fund

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MUMBAI (Reuters) – Emerging markets fund firm Ashmore (ASHM.L) said on Thursday it has launched a fund jointly with power trading firm PTC India (PTCI.BO) that aims to raise $750 million to finance power projects across all energy-related sectors in India.

India’s power sector, beset by a peak power deficit of 12 percent, has struggled to attract foreign investment in recent years, but the tide seems to be changing.

In March, a group of investors including Morgan Stanley’s (MS.N) infrastructure arm, Goldman Sachs (GS.N), and General Atlantic said it invested $425 million in Asian Genco Pte Ltd, which has stakes in power generation assets in India.

The Ashmore PTC India Energy Infrastructure Fund will provide equity financing to energy projects including those related to generation, transmission, distribution, fuel extraction and fuel transport infrastructure, the British firm said in a statement.

The fund will target the private sector to lead the initial investments and exit through strategic sales and public markets once assets mature. The portfolio will contain a mix of holding and asset companies.

The closed-ended fund will offer a target return of 20 percent, with 10 years maturity, and is aimed at local and international investors, Ashmore said. (Reporting by Pratish Narayanan; editing by Malini Menon)