Power transmission solutions provider, Sterlite Technologies has entered into an agreement to raise Rs 500 crore through equity infusion from Standard Chartered Private Equity for funding its existing as well as new projects, the company said today.
"Sterlite Technologies has entered into agreements with Standard Chartered Private Equity for an equity investment of Rs 500 crore in Sterlite Power Grid Ventures Ltd (SPGVL)," a release issued here said.
SPGVL, a subsidiary of Sterlite, focused on the development and operations of power transmission projects, will issue convertible securities to Standard Chartered Private Equity for a minority share, it said.
"The proceeds will be used for equity contribution in existing as well as new power transmission projects. While there have been many foreign investments in the power generation sector, this would be the first foreign investment into India's power transmission sector," SPGVL chairman Pravin Agarwal said.
He further said that though the country's generation capacity is increasing, there is a clear bottleneck in transmission and distribution sectors due to which many parts of the country are energy surplus while others remain power-deficient.
"Through our initiatives in transmission, we endeavour to contribute to the new government's stated vision of providing 24X7 power to every Indian household," Agarwal added.
SPGVL is the largest private developer of power transmission systems in the country with a portfolio of six projects on build, own, operate and maintain (BOOM) basis spread across 10 states, the company said. (More) PTI PSK NSK TVS 07071217
The first three projects, with over 2,000 kms of transmission lines, and two 765/400 KV substations are in the final stage of completion, while the next three projects will start operating sequentially from FY17.
In September 2013, Sterlite energised 400 KV D/C Purnia – Biharsharif line, a critical link between India's Eastern and Northern Grids, the release said.
Commenting on the deal, Standard Chartered Private Equity Managing Director and India Head, Udai Dhawan said: "We are extremely excited to partner with Sterlite, which has established itself as a leading player in the power transmission sector on the back of a high quality management team, excellent execution capabilities and a marquee project portfolio.
"We believe that our partnership with the Sterlite group, a long standing and a highly valuable client of Standard Chartered Bank, will help the build-out and the strengthening of the transmission infrastructure in India," he said.