The Mumbai Urja Transmission Limited (MUML) project has the potential to carry more than 2000 MW additional power to Mumbai and Navi Mumbai.
Jan 6, 2025
Sterlite Grid 32 Limited (SGL32), a subsidiary of Sterlite Power Transmission Limited (SPTL) and a leading power transmission developer, has successfully refinanced its Mumbai Urja Transmission Limited (MUML) project by way of listed Non-Convertible Debentures (NCD) worth INR 2450 crore.
The infrastructure business of SPTL was demerged into Sterlite Grid 5 Limited (SGL5) on October 8, 2024. SGL5 recently entered into a joint venture with GIC of Singapore, following which SGL5 will execute all its transmission projects in India through SGL32.
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This is the first Listed NCD issuance of SGL32 after its JV with GIC of Singapore.
Speaking on the development, Mr. Pratik Agarwal, Director, Sterlite Grid 32 Ltd, said, “This precedent-setting transaction marks a significant achievement for the business, showcasing our ability to secure cost-efficient financing while maintaining strong investor confidence. The success of this transaction highlights our commitment to deliver value to our stakeholders and aligns with our vision of advancing India’s green energy infrastructure.
“This initiative is not merely a financing success but a stepping-stone to our future financing strategy. This transaction has helped us diversify from its traditional sources of debt financing to debt capital market financing. The JV now has access to a stronger alternative source of funds,” he added.
The JV platform won the MUML project in June 2020, through Tariff Based Competitive Bidding (TBCB) to execute the green energy corridor project on BOOM (build, own, operate, maintain) basis for a period of 35 years.
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The MUML project has established a transmission system covering western region strengthening Scheme-XIX (WRSS-XIX) and northeastern region strengthening Scheme-IX (NERSS-IX) spanning across Maharashtra, Gujarat, Assam and Arunachal Pradesh. It is critical for strengthening the transmission system in the Mumbai Metropolitan Region, with the potential to carry more than 2000 MW additional power to Mumbai and Navi Mumbai.
The closure of INR 2450 crore funding manifests confidence in India’s rapidly expanding renewable power sector. MUML will play a critical role in this mega transmission project that will facilitate the evacuation of 20GW of renewable energy from the State of Rajasthan.
