Sterlite Power, part of the Vedanta Group, has formed a joint venture with Singapore’s sovereign fund GIC to set up and operate power transmission projects in the country.
Sterlite Power will own the majority stake of 51% and GIC will own the remaining 49% stake in the JV.
The JV platform will be well positioned to target the new opportunities emerging from the need for over $13 billion of capex announced by the central government, they said in a release.
Pratik Agarwal, managing director, Sterlite Power, said, “India’s renewable vision calls for investments in transmission to unlock the full potential of 500 GW of renewable power. This JV 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 $13 billion bid pipeline. We stay committed to building world-class assets and empowering humanity by addressing the toughest challenges of clean energy delivery.”
Ang Eng Seng, chief investment officer of infrastructure at GIC, said, “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.”
Sterlite Power was advised by Deutsche Bank, AZB Partners and Khaitan & Co. GIC was advised by Avener Capital, Shardul Amarchand Mangaldas & Co. and PWC.
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 $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.