T. Ananda Krishnan's Usaha Tegas Sdn aims to invest in KSK Energy Ventures Ltd, The Star newspaper said, quoting sources in the firm.
Usaha Tegas may provide as much as US$250 million. The closely-held group might split the funds between KSK Energy and its power projects, and was likely to later increase its investments.
Investing in KSK Energy may help Krishnan, 72, tap the demand in the world's third-fastest growing major economy as the nation builds power plants to reduce blackouts.
India is studying options to set up a Rs.500 billion ($11 billion) power infrastructure fund to facilitate the construction of electricity generation capacity.
Krishnan is Malaysia's richest person after Robert Kuok, with his wealth estimated at $8.1 billion, according to Forbes magazine.
The billionaire controls Maxis Bhd, Malaysia's biggest mobile-phone operator, and has interests in real estate, marine transport and oil and gas companies.
KSK Energy operates four thermal power plants with a combined capacity of 279 MW, has three facilities aggregating 4,183 MW under construction and plans to build three plants of 5,400 MW, according to its website.