Gati Infrastructure

About Gati Infrastructure

GI Hydro Private Limited, formerly known as Gati Infrastructure Private Limited, operates as a special purpose vehicle focused on the development of hydroelectric power. The company was originally incorporated on October 27, 1983, and is an energy initiative promoted by Mahendra Agarwal, the founder and CEO of the logistics firm Gati Limited. This venture into the energy sector represents a diversification from the founder's primary background in distribution and supply chain solutions.

The firm's core business revolves around developing, owning, and operating power projects under a Build, Operate, Own, and Transfer (BOOT) model. Its flagship achievement is the commissioning of the 110 MW Chuzachen run-of-the-river hydroelectric power project in East Sikkim, India. This project, which harnesses the water flow from the Rangpo and Rongli rivers, was the first independent power project (IPP) of its scale in the private sector in the region. The power generated is connected to the national grid via a dedicated transmission line, enabling its distribution across the country. The business model relies on long-term implementation agreements, such as the 35-year contract with the Government of Sikkim for the Chuzachen project.

The Chuzachen project was a significant undertaking, built at a cost of approximately Rs 1,188 crore. The financing structure involved prominent partners, with IDFC acting as the lead financier and GE Energy Financial Services India making a substantial equity investment of Rs 257 crore. In addition to the operational Chuzachen plant, the company's portfolio has included other development projects in Sikkim, such as the 54 MW Bhasmey and 71 MW Sada Mangder hydropower projects. The company also had interests in coal mining in Indonesia and a 1 MW solar power project in Andhra Pradesh. The company has faced financial challenges, having defaulted on loans in 2016, and has subsequently sought to restructure its debt by raising funds through non-convertible debentures.