Interim Management Statement

RNS Number : 2496H

Infrastructure India plc

17 February 2010

 



Date:	17 February 2010
On behalf of:	Infrastructure India plc
Embargoed for:	0700hrs

Infrastructure India plc

Interim Management Statement

Infrastructure India plc ("Infrastructure India" or "the Company"), the investment company focusing on Indian infrastructure assets, today releases an Interim Management Statement. This statement covers the period from 1 October 2009 to 16 February 2010. 

In 2008, the Company invested a total of £13.2 million (Rs 1.1 billion) in Shree Maheshwar Hydel Power Corporation Limited ("SMHPCL"), in return for a 6.23% equity interest (post all dilution effects).  SMHPCL was specifically established to own and develop a 400MW hydroelectric power project situated on the Narmada River in Maheshwar, in the southwestern region of Madhya Pradesh in India.  This project is expected to be one of the largest privately owned hydroelectric schemes to be commissioned in India within the next two years.  The first of the ten turbines of 40MW each to be installed and commissioned at the project is now currently undergoing final assembly on site.  It is expected to be installed and begin operational testing during the next few months. The first turbine is due to be operational in the first half of 2010, to be followed by a roll out programme of the remaining nine turbines over approximately the next twelve months. Testing of the electrical grid connection system is due to be undertaken within the next month and is expected to be energised by the external grid for full scale testing.

Infrastructure India also has invested £11.3 million (Rs 960m) in a toll road in Central India - Western Madhya Pradesh Infrastructure & Toll Roads Ltd. ("WMPITRL").  The Company's investment into WMPITRL represents a 26% shareholding in the project.  WMPITRL was awarded the project on a DBFO (Design, Build, Finance, Operate) basis in August 2007 for a term of 25 years.  The toll road project comprises a single 125 km stretch of road which is being widened from the existing two lanes to four lanes in order to reduce congestion experienced on the route and is part of the local State Government sponsored road upgrade programme.  The project is currently 22 months into construction.  While tolling operations were originally anticipated to commence around April 2010, as announced on 15 January 2010, the Company is pleased that partial tolling began ahead of schedule and has commenced on approximately 67km of the road.  The final sections of the road will begin tolling on completion of various bridges currently under construction.  In respect of the marginal cost overrun in the project, which was expected at the time of the investment, the Company contributed a further £881,000 in October 2009.

Together, these two investments account for approximately £24.5 million of deployed capital, representing a substantial proportion of the net proceeds raised at the time of the IPO.  

The Company is pleased with the progress made on its current investments, in particular with tolling operations having now commenced earlier than anticipated over a substantial proportion of the toll road project.  

Further to the announcement on 3 November 2009 regarding the notification the Company had received from its investment adviser, Bloomsbury Asset Management Advisors ("BAMA") of certain key staff resignations, shareholders of Infrastructure India will recall that, pursuant to the Investment Adviser Agreement (the "IAA") entered into between Infrastructure India HoldCo, a subsidiary of the Company, and BAMA, BAMA has a period of time in which to nominate appropriately skilled replacements for those BAMA employees who have resigned.  Each such nominated person must meet with the specific approval of Infrastructure India HoldCo and if such persons are not nominated by BAMA or do not meet with the specific approval of Infrastructure India HoldCo, then the IAA will terminate.  At the time of this announcement, the Company has not been provided with any nominations by BAMA. 

In the interim and further to the announcement on 3 November 2009, Akur Partners LLP ("Akur") has continued to act as the Company's retained asset adviser, to ensure the Company has access to services equivalent to those contained in the IAA.  Further, Akur personnel now represent the Company on each of the boards of the investee companies, namely SMHPCL and WMPITRL.

On 14 December 2009, the Board received notification from Nortrust Nominees Limited, a member of the Company acting on behalf of Advance UK Trust PLC ("Advance UK"), requesting a requisition for a general meeting of the Company.  Further to the announcement on 5 February 2010, the Company has submitted to the UK Listing Authority a circular to shareholders convening the general meeting requisitioned by Advance UK.  The circular is required to be approved by the UK Listing Authority pursuant to Listing Rule 13.2.1 and once the circular has been approved, it will be sent to shareholders as soon as practicable thereafter.  At the time of this announcement, the UK Listing Authority had not yet approved the circular.

Indian GDP continues to grow, exceeding many expectations, yet notwithstanding this, one of the major limiting factors to increased growth remains infrastructure constraints.  The Company remains of the belief that India remains an attractive market in which to pursue investment opportunities in the infrastructure sector, recognised as it is by the government of India as a key focus area to allow the country to deliver its growth potential.

The Company remains focused on investing in assets which it believes have the potential to generate substantial capital growth and income for the Company and its shareholders. Infrastructure India will issue its results for the financial period to 31 March 2010 in July 2010.

-Ends-

Enquiries:

Infrastructure India plc	www.iiplc.com
Rupert Cottrell	Via Redleaf Communications
Akur Partners LLP	020 7955 1513
Andrew Dawber / Anthony Richardson / Thomas Frost
Smith & Williamson	020 7131 4000
Azhic Basirov / Siobhan Sergeant
Redleaf Communications	020 7566 6700
Emma Kane / Adam Leviton / Henry Columbine	[e-mail]

 

END

 

 

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