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Standard Chartered Private Equity is to invest Rs 500 crore in Pune-based Sterlite Technologies’ power transmission infrastructure business Sterlite Power Grid Ventures Ltd (SPGVL).
This would be the first foreign investment in Indian power transmission sector, even though there has been many in the power generation segment.
SPGVL, which focuses on development and operations of power transmission projects, will issue convertible securities to Standard Chartered PE for a minority share. The proceeds will be used for equity contribution in existing as well as new power transmission projects, Sterlite Technologies, a transmission solutions provider for the telecom and power industries, said in a statement.
“India’s energy sector focus remains on increasing generation capacity, but T&D is a clear bottleneck due to which many parts of the country are energy surplus while others remain power-deficient. Through our initiatives in transmission, we endeavour to contribute to the new government’s stated vision of providing 24X7 power to every Indian household,” said Pravin Agarwal, Chairman SPGVL & Director - Sterlite Technologies.
SPGVL is the largest private developer of power transmission systems in the country with a portfolio of six projects on build, own, operate and maintain (BOOM) basis spread across 10 states.
The first three projects, with over 2,000 km of transmission lines and two 765/400 KV substations are in final stage of completion, while the next three projects will start operating sequentially from FY17.
In September 2013, Sterlite energised 400 KV D/C Purnia – Biharsharif line, a critical link between India’s eastern and northern grids.
“We believe that our partnership with the Sterlite group, a long standing and a highly valuable client of Standard Chartered Bank, will help the build-out and the strengthening of the transmission infrastructure in India,” said Udai Dhawan, Managing Director and India Head of Standard Chartered Private Equity.
On Monday, Sterlite Technologies scrip closed 1.03 per cent higher at ₹68.40 on the BSE.
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