IndiGrid, Brookfield show interest in buying 2 transmission projects

Joint venture projects by Sterlite Power Transmission Ltd and Australia-based AMP Capital worth Rs 3,500-4,000 cr

India Grid Trust (IndiGrid) and Canada-based CPP Investments and Brookfield Global Asset Management have shown "initial interest" in buying two transmission projects developed by a joint venture of Sterlite Power Transmission Ltd and Australia-based AMP Capital with a combined enterprise value of Rs 3,500-4,000 crore, sources said.

They said the JV has appointed Standard Chartered as advisor to sell off the Lakadia Vadodara Transmission Project (LVTPL) and Udupi-Kasargod Transmission Project (UKTL). The two projects have a combined length of close to 600 km.

“Among the domestic and international buyers that have shown an initial interest in the two transmission projects include CPP Investments, Brookfield and IndiGrid," one of the sources said.

IndiGrid is a power transmission trust backed by private equity investor KKR and Singapore’s national investor GIC.

Sterlite Power once had a stake in it and IndiGrid had the first right to refusal on selling these kinds of power transmission projects developed by it. However, Sterlite sold off its stake and that agreement has now lapsed.

CPP Investments is a corporation set up under the Canada Pension Plan Investment Board Act to oversee and invest the funds contributed to and held by the Canada Pension Plan.

Brookfield Asset Management Inc. is a Canadian multinational company. It is one of the world's largest alternative investment management companies with over $725 billion of assets under management in 2022.

These three companies and Sterlite Power refused to comment on the development in response to email queries sent to them.  

While LVTPL is expected to start operations next month, UKTL will do so by the middle of next year.

The LVTPL project spans 329 km and it will connect the wind-energy zones of Bhuj to other parts of Gujarat and Maharashtra. The project includes the Lakadia-Vadodara transmission line that will evacuate power from renewable energy sources in Kutch to Vadodara in Gujarat for onward supply across India.

The UKTL project is an inter-state transmission system project spanning the southern states of Karnataka and Kerala. It includes a 1000MVA 400/220 kV gas insulated substation at Kasargod in Kerala, and construction of transmission line over 240 circuit km from Udupi in Karnataka to Kasaragod in Kerala.

AMP Capital and Sterlite Power invested $300 million for transmission projects in December 2020. The 50:50 joint venture was set to develop four projects across the country.

The four projects, including LVTPL and UKTL have a circuit length of almost 1,800 km of transmission lines across the western, southern and northeastern parts of the country. The other two transmission projects are the Goa Tamnar Transmission Project and the Mumbai Urja Marg Transmission Project.