Is Clean tech the next big thing for PE's??

Yes, clean tech will be the next target for the PEs as it is going to be a real time profit making venture. Suzlon, Adani like firms are already in the venture which is showing a good return. Even this year's budget FM gave tax holiday and excise cut on the production of electric cars in the country which could make India a target for foreign firms and even Indian producers to come up with new technological innovation. The immense resource of Solar Energy in the Rann of Kuch and still unexplored tidal energy at coastal India could be the next target. But the risk for Private Equities could be the gestation period which could be unexpectedly higher than other industries as the public in India like country are not fully aware about clean tech which is to be done first and foremost by government and even from the side of business houses. Once the gap is filled, the gestation period can be brought down and risk can reduced at a much good rate.

Both of you are correct. US and Europe have already started to invest big time in Clean Tech with Australia not far behind. India has also realized the potential and everyone is jumping in.

Esha

I agree with you on this.The two sectors I am bullish upon are clean tech and the other is agriculture.Clean Tech is because the govt will provide the tax benefits by creating special parks and economic zones that will attract the entrepreneurs.Also because of the recent awareness being created by various summits across the globe ,it seems that PE fims would invest in companies related to wind energy,solary energy.As you rightly pinted out,these are capital intensive units,hence the funds will have to be arranged and the companies with robust order book will definitely be funded by PE firms.