Sterlite Power partners with Singapore's GIC to develop green power transmission projects in India

Power transmission solutions provider Sterlite Power Transmission Ltd and Singapore's sovereign wealth fund GIC have entered into an agreement to establish a new platform focused on the development and ownership of power transmission projects in India.

According to the agreement, GIC will acquire a 49% stake in the joint venture, while Sterlite Power will retain a controlling 51% share.

This strategic partnership aims to capitalise on the significant opportunities in India's transmission sector, which is estimated to be worth $13 billion. The investment will primarily target the development of green corridors for transmitting renewable energy (RE) power.

Pratik Agarwal, Managing Director of Sterlite Power in an interview to CNBC-TV18, stated, “To begin with GIC-Sterlite JV company will have five projects in the JV company platform. We will potentially look to add a few more projects that are in other platforms. In time to come we would like to win close to Rs 30,000 crore of projects just in the next three years, which is by 2027. And then those projects will all commission in the subsequent two years, which is by 2028-2029. So close to Rs 30,000 crore which is about $4 billion is what we hope to deploy together.”

Sterlite Power boasts a robust portfolio comprising 33 completed, sold, and under-construction projects, encompassing approximately 15,350 circuit km of transmission lines across India and Brazil. In India alone, the company manages projects valued at over $2 billion.

Notably, Sterlite Power has secured a third (by tariff) of all inter-state private transmission projects awarded in India through competitive bidding since 2011.

Last year, Sterlite Power Transmission said it had decided to demerge its electricity transmission infrastructure business spread across India and Brazil.

The demerged Sterlite Power Transmission Ltd (SPTL) entity will continue to hold the global products and specialised EPC (engineering, procurement and construction) services business as well as the convergence - fiberco business.

SPTL announced the strategic decision to demerge its power transmission infrastructure business (build, operate and transfer model) spread across India and Brazil.

The power transmission infrastructure business encompasses the transmission assets in India and Brazil, which will now be transferred to Sterlite Grid 5 Ltd (SGL5). Both SPTL and SGL5 will have independent boards and focused executive management teams.

Under the demerger scheme, existing Sterlite Power shareholders will receive one additional share of SGL5 for every share of SPTL they hold.