Sterlite Power and GIC Form JV for Indian Power Transmission Platform
Posted on 03/27/2024
Singapore’s GIC Private Limited is increasing its investment activity in India. The Singaporean sovereign wealth fund is keen on the country’s need for energy infrastructure. The JV platform will be positioned to target the new opportunities emerging from the need for over US$ 13 billion of CAPEX announced by the Government of India. Sterlite Power Transmission Ltd is an Indian private power transmission developer. Sterlite Power and an affiliate of GIC have announced the signing of definitive agreements to set-up a new platform to develop and operate power transmission projects in India. Sterlite Power will own the majority stake of 51% and GIC will own the remaining 49% stake.
Sterlite Power has a portfolio of 33 completed, sold and under construction projects covering approximately 15,350 circuit Kms of transmission lines across India and Brazil. In India, Sterlite Power has over USD 2 billion worth of projects under management. It has won a third (by tariff) of all inter-state private transmission projects awarded in India under competitive bidding since 2011.Sterlite Power also has a robust portfolio of high-performance power conductors, extra-high voltage (EHV) cables and optical ground wires (OPGW). The Company provides bespoke solutions for the upgrade, uprate, and fiberization of existing transmission infrastructure projects. Advancing the carriage toward a green energy-efficient future, Sterlite Power has an increasing focus on integrating renewable energy into the grid. It is the first transmission player to launch InvIT in the power sector, listed on the BSE Limited and the National Stock Exchange of India Limited. Sterlite Energy Limited is an energy company focused on development and operation of power plants in India. Sterlite Energy Limited is a subsidiary of Vedanta Resources PLC.
Commenting on the JV, Mr. Pratik Agarwal, Managing Director, Sterlite Power, said in a press reelase “India’s renewable vision calls for investments in transmission to unlock the full potential of 500 GW of renewable power. This joint venture signals global confidence in India’s growth vision. With GIC as our partner, we are poised to play a leading role in India’s transmission sector, starting with the USD 13 billion bid pipeline. We stay committed to building world class assets and empowering humanity by addressing the toughest challenges of clean energy delivery.”
Mr Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said in a press release, “We are pleased to partner with Sterlite Power, a leading transmission infrastructure developer and operator, to support India’s energy transition ambitions. We believe transmission infrastructure will play a crucial role in facilitating the growth of renewable energy supply to sustainably meet the increasing power demand in the country. India is a key long-term market for GIC given its strong economic fundamentals and favourable demographics, which are spurring opportunities in many sectors including infrastructure development.”
Advisors
Sterlite Power was advised by Deutsche Bank, AZB Partners, and Khaitan & Co.
GIC was advised by Avener Capital, Shardul Amarchand Mangaldas & Co., and PWC.