Standard Chartered PE to invest Rs500 crore in Sterlite Technologies
07 July 2014
Sterlite Technologies, a provider of transmission solutions for the telecom and power sectors, has entered into an agreement with Standard Chartered Private Equity to raise Rs500 crore through equity infusion.
The Pune-based company said it intends to use the proceeds to fund its existing and new projects.
While there have been foreign investments in the power generation sector, this would be the first foreign investment in India's power transmission sector, the company said in a statement.
The funding would be made in Sterlite Technologies' subsidiary Sterlite Power Grid Ventures Ltd (SPGVL), which focuses on development and operations of power transmission projects.
''India's energy sector focus remains on increasing generation capacity, but transmission and distribution is a clear bottleneck due to which many parts of the country are energy surplus while others remain power-deficient," said Pravin Agarwal, Chairman, SPGVL and Director at Sterlite Technologies.
"Through our initiatives in transmission, we endeavor to contribute to the new government's stated vision of providing 24X7 power to every Indian household,''he added.
Sterlite Technologies will issue convertible securities to Standard Chartered Private Equity for a minority share. The proceeds will be used for equity contribution in existing and new power transmission projects.
SPGVL is a private developer of power transmission systems in the country with a portfolio of six projects on build, own, operate and maintain (BOOM) basis 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.