Sterlite Power, AMP Capital to develop power transmission projects worth US$1 bn

• AMP Capital and Sterlite Power will each invest an initial amount of approximately $150 million in the equal partnership for the development of four transmission projects

• The partnership has the potential to reach an overall investment size of $500 million, a statement said

New Delhi: Sterlite Power Transmission Ltd has announced a partnership with global investment manager AMP Capital on Tuesday for the development of power transmission projects worth US$1 billion in India. AMP Capital and Sterlite Power will each invest an initial amount of approximately $150 million in the equal partnership for the development of four transmission projects, and have put in place debt financing, which represents a total capital outlay of around $1 billion, said an official statement. These projects have a circuit length of nearly 1,800 km transmission lines across western, southern and north eastern regions of India, it added.

Sterlite Power, AMP Capital  to invest in new inter-state transmission projects

The projects are at various stages of construction and will evacuate power from multiple renewable energy generation projects in the country, Sterlite Power managing director Pratik Agarwal said. The partners may in the future contribute further capital for new inter-state transmission projects which are expected to be tendered by the government. Therefore, the partnership has the potential to reach an overall investment size of $500 million, the statement said.

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Due to years of underinvestment in transmission capacity there is significant demand for investment, and the government has been promoting the participation of the private sector in transmission line development through the continued implementation of supportive regulatory reforms, Agarwal said. Sterlite Power has won a third of all inter-state private transmission projects awarded in India under competitive bidding since 2011. It has completed and sold nine transmission assets in India.

'INVITs have created transparent, market-driven exit opportunities for investors'

Sharat Goyal, Head of India, Infrastructure Equity at AMP Capital said: "India is a key target market for AMP Capital and we have dedicated time and resources to finding a compelling investment opportunity suited to our clients. This investment capitalises on the opportunity presented by the Indian infrastructure sector at this time, as well as benefitting from policy initiatives like Infrastructure Investment Trusts (INVITs) which have created transparent, market-driven exit opportunities for investors willing to invest capital in the development of greenfield infrastructure projects in India."

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