The Cdpq of Canada looks at Infra and the opportunities for energy transition in India
Bombay : Canada’s pension fund Caisse de depot et placement du Quebec (CDPQ) is optimistic about infrastructure investment opportunities in India and wants to fund Indian companies’ net zero transition journey, senior executives say.
CDPQ, which began investing in India in 2016, has so far invested C$8 billion in the country in infrastructure, real estate, public markets, fixed income and private equity. “We are very bullish on India. There is great potential for investment there. the ease of doing business in India. As a result, there are many growth opportunities for CDPQ, and we are examining a range of options,” said Kenneth Juster, Senior Advisor, CDPQ Global and former US Ambassador to India. India.
Given the patient and long-term nature of its capital, the pension fund wants to focus on creating partnerships and platforms to invest and reinvest large sums of capital over long periods of time instead of investing in unique assets. “Our core strategy is to build partnerships where we can deploy constructive capital, which means that every investment we make brings long-term value to this business and to the planet. This also means that ESG and sustainability are fundamental pillars of our investment strategy. We want to build long-term businesses, where we can put in place meaningful governance, forge strong partnerships and alliances for sustainable growth, and ultimately create leaders in their respective industries who can shape the future through leadership. informed and impactful,” Saurabh Agarwal said. , Managing Director, CDPQ India and Managing Director, Infrastructure, South Asia and Middle East.
“We are building long-term platforms based on our Constructive Capital theme. It is not about investing in a specific project or a one-off transaction; we invest in portfolio companies, aligning with – and supporting – our partners and management teams, allowing us to continuously reinvest capital over a period of time as the business or partnership develops develops,” Agarwal added.
Through its platforms, the pension fund invests across the spectrum, from greenfield to brownfield projects in infrastructure and from stress to performing credit in fixed income securities.
For example, the fund has invested C$650 million in its Azure Power solar platform since 2016, growing the company from a 350 megawatt operating business to 3 gigawatt (GW) operating assets. ) and a 5 GW pipeline.
It has also established a highway investment platform called Maple Highways, which is in the process of acquiring three operating assets, including one under the Toll-Operate-Transfer (TOT) model of the National Highways Authority of India.
“In addition to renewables and roads, we are also exploring investment partnerships in sectors such as fiber, towers and data centers,” Agarwal said.
Another major opportunity that CDPQ is exploring is the energy transition space in India. “The energy transition is very important to us. Industry will simply not be able to switch from fossil fuels to renewables overnight. Thus, there is a significant opportunity to fund the transition phase for companies from fossil fuels to renewables,” Juster said.
Agarwal added that the fund manager is watching the energy transition space carefully, where he wants to see how he can accelerate and accelerate the transition from India’s carbon-based economy to a green economy.
“La Caisse is committed to working with the best energy companies in their category and providing them with its capital as part of a transition to a greener economy. As part of our new climate strategy, we have a dedicated capital envelope to finance energy transition companies and can invest in companies that are currently carbon intensive but have a clear path to net zero,” said he declared. investors can take this position today, and we strongly believe this will be a source of attractive investment opportunities,” he added.