Standard Chartered private equity is set to invest Rs 500 crore in power business of Pune-based Sterlite Technologies.
Sterlite Technologies Limited (Sterlite), a global provider of transmission solutions for the telecom and power industries, has entered into agreements with Standard Chartered Private Equity for an equity investment of Rs 500 crore in Sterlite Power Grid Ventures Ltd (SPGVL).
SPGVL, a subsidiary of Sterlite, focused on the development and operations of power transmission projects, will issue convertible securities to Standard Chartered Private Equity for a minority share.
More From This Section
“We look forward to a long term partnership with Standard Chartered Private Equity in our Power Transmission Infrastructure Business. 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 endeavor 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 3 projects will start operating sequentially from FY17. In September 2013, Sterlite energized 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.