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March 7
Sterlite Power Transmission said on Monday that it has achieved financial closure for its Nangalbibra-Bongaigaon Transmission (NBTL) project after successfully securing the entire debt funding of ₹440 crore from Tata Cleantech Capital which is the first private sector climate finance institution in the Green Banking Network. The financial closure was achieved within two months of the SPV acquisition of the project.
Sterlite Power acquired the NBTL SPV in December 2021 to execute the inter-state transmission system (ISTS) project. The project involves the construction of around 300 circuit km of transmission lines and a greenfield substation with 320 MVA transformation capacity across the North-Eastern terrain of Assam and Meghalaya, the company said in a statement.
Commenting on the financial milestone, Sterlite Power Managing Director Pratik Agarwal, said, “We are pleased to conclude this deal with Tata Cleantech Capital which is a first-of-its-kind climate finance institution that is working towards climate change mitigation in India. Sterlite Power is an active proponent of greening the grid, and we are committed to India’s ambitious renewable energy (RE) goal of 500 gigawatts (GW) by 2030.”
Executing complex projects
Sterlite Power has a strong track record of executing complex projects successfully and has set new benchmarks in the industry by use of cutting-edge technologies and innovative financing. Despite the weak market conditions owing to the pandemic, the company has been successful in forging relationships with India’s leading financial institutions.
The NBTL project will transmit over 1,000 megawatt (MW) of power from Assam to the western parts of Meghalaya. Apart from bringing additional power flow, it will also help in decongesting the downstream networks in the region, improving the quality and reliability of power flow in North-East India.
Tata Cleantech Capital, Managing Director, Manish Chourasia, said, “India’s power transmission sector is playing a critical role in the country’s transition to a net-zero carbon future. Our objective at Tata Cleantech Capital is to support and invest in green energy sectors and the long-term financing of this project is a step in that direction.”
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