For power transmission projects entailing an investment of USD 1 billion, Sterlite Power Transmission Ltd has announced its association with global investment manager AMP Capital.
December 30, 2020
With the plan to develop energy transmission projects in India, Sterlite Power and global investment manager AMP Capital has formed a partnership, and both the companies will invest USD 150 million.
The platform will develop four transmission projects and will include debt financing, which represents a total capital outlay of around USD 1 billion, stated a company release.
These projects will have a circuit length of nearly 1800 kilometers of transmission lines across the Western, Southern, and North-Eastern regions of India. In addition to providing the critical infrastructure required for evacuating power from multiple renewable energy generation projects, this will also strengthen the power delivery infrastructure in the country, the release added.
Sterlite Power is the key developer of power transmission infrastructure with projects of more than 13,700 circuit kms and 24,800 MVA in India and Brazil and is the sponsor of IndiGrid, India’s first power sector Infrastructure Investment Trust (InvIT), listed on the BSE and NSE.
The partners may in the future contribute further capital for new inter-state transmission projects with the potential to reach an overall investment size of USD 500 million.
Sharat Goyal, Head of India, Infrastructure Equity at AMP Capital asserts that: “This investment capitalizes on the opportunity presented by the Indian infrastructure sector at this time, as well as benefitting from policy initiatives like Infrastructure Investment Trusts (INVITs) which have created transparent, market-driven exit opportunities for investors willing to invest capital in the development of greenfield infrastructure projects in India,” said.
AMP Capital has been investing in infrastructure since 1988 and has USD 21 bn infrastructure equity and debt assets under management as of 30 June 20201. Early this year, AMP Capital had raised USD 3.4 billion for a new global infrastructure fund.
Pratik Agarwal, Managing Director, Sterlite Power affirms “The world is undergoing a clean-energy revolution and India is leading this effort with its mammoth target of 450GW by the year 2030. Sterlite Power will contribute towards this noble cause by creating the required transmission infrastructure so that green energy can reach the most underserved households.”
