Sterlite Power, a prominent private power transmission developer in India, has entered into definitive agreements with Singapore's sovereign wealth fund GIC to establish a new platform for developing and operating power transmission projects in India. Under this arrangement, Sterlite Power will hold a controlling interest of 51 percent, with GIC holding the remaining stake.
The initial report indicated that Sterlite Power, supported by metals tycoon Anil Agarwal's Vedanta Group, initiated an internal restructuring initiative aimed at unlocking value. As part of this initiative, the company aimed to separate its solutions vertical and subsequently bring in GIC as a strategic joint venture partner for its power transmission business. "The JV platform will be well-positioned to target the new opportunities emerging from the need for over $ 13 billion of capex announced by the Government of India", according to an official statement on the transaction.
Commenting on the JV, Pratik Agarwal, Managing Director, Sterlite Power, said, “India's renewable vision calls for investments in transmission to unlock the full potential of 500 GW of renewable power. This joint venture signals global confidence in India's growth vision. With GIC as our partner, we are poised to play a leading role in India's transmission sector, starting with the USD 13 billion bid pipeline. We stay committed to building world-class assets and empowering humanity by addressing the toughest challenges of clean energy delivery.”
Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said, “We are pleased to partner with Sterlite Power, a leading transmission infrastructure developer and operator, to support India’s energy transition ambitions. We believe transmission infrastructure will play a crucial role in facilitating the growth of renewable energy supply to sustainably meet the increasing power demand in the country. India is a key long-term market for GIC given its strong economic fundamentals and favourable demographics, which are spurring opportunities in many sectors including infrastructure development”. Sterlite Power received counsel from Deutsche Bank, AZB Partners, and Khaitan & Co., whereas GIC was advised by Avener Capital, Shardul Amarchand Mangaldas & Co, and PwC.