Power producer Sembcorp on Monday announced the sale of Sembcorp Energy India (SEIL), which operates two coal-fired plants of 2.6 gigawatt (GW) capacity, to Oman-based Tanweer Infrastructure for ₹11,700 crore.

Sembcorp Utilities, a subsidiary of Singapore-based Sembcorp Industries, is selling its entire stake in its subsidiary SEIL to Tanweer Infrastructure Pte, which is indirectly owned by a consortium led by Oman Investment Corporation in partnership with Oman’s Ministry of Defence Pension Fund and Dar Investment SPC.

“The proposed sale is for a consideration of ₹11,700 crore, approximately (Singapore Dollar) $2.1 billion, and will result in the deconsolidation of SEIL from Sembcorp, with Tanweer Infrastructure becoming the sole shareholder of SEIL on completion. Tanweer Infrastructure will settle the final consideration via a deferred payment note (DPN) provided by SCU,” Sembcorp said in a statement.

Sembcorp Group President and CEO Wong Kim Yin said the sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green, while protecting the interests of all stakeholders.

‘No plans to exit India’

When asked if the company will exit India, Sembcorp Industries South Asia CEO Vipul Tuli told BusinessLine that the company has no plans to exit India. He said the firm will not invest in coal-fired plants.

“We have emerged as one of the leading wind generation players in India, a position that we intend to continue to grow. We are also in the process of building up a strong portfolio in the solar space. And of course, there are a number of other green opportunities that are being evaluated, as you can imagine, which range from RTC power to storage to green hydrogen and others,” he added.

India RE assets

Sembcorp in its H1 2022 results update said it had secured 115 megawatts (MW) of renewable projects in India during the year. It has 35 MW of installed solar power capacity, while 461 MW is under development. In wind power, it has an installed capacity of 1,694 MW and another 264 MW is under development.

Its solar assets generated 31 gigawatt hour (GWh) of electricity in H1 2022, while wind assets generated 1,983 GWh of electricity. Both the assets are under Sembcorp Green Infra.

Sembcrop is supplying power through long-term agreements to discoms in Andhra and Telangana. It is also supplying power to the Bangladesh Power Development Board.

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