Sterlite Power Successfully Refinances Green Energy Corridor Project in Gujarat
Sterlite Power has successfully concluded the refinancing of its Lakadia-Vadodara Transmission project, making a prepayment of Rs 1,840 crore. The project achieved full operational status in January 2023 and received new financing from HDFC Bank, IIFCL, and Bank of Baroda, allowing for the prepayment of the existing project loan. Sterlite Power, a leading power transmission developer and global services provider, announced this successful refinancing within 12 months of the project's full operational status.
The new financing secures a reduced interest rate of 8.25% per annum, a significant improvement over the previous terms, and the overall tenure of the facility is 18 years. This accomplishment positions Sterlite Power as the first private sector inter-state power transmission asset to secure such favorable refinancing terms, highlighting the keen interest of financial institutions in supporting power transmission projects with stable, long-term cash flows.
Managing Director Pratik Agarwal emphasized that refinancing commissioned projects aligns with the company's strategic resource reallocation efforts. Securing a better interest rate for commissioned projects not only adds to the bottom line but also delivers value to all stakeholders.
The Lakadia-Vadodara Transmission project links the 765/400 kV substation at Lakadia to Vadodara through a 335 km, 765 kV double-circuit transmission line. With 812 towers spanning seven districts in Gujarat, this power transmission corridor stands as one of the largest transmission assets built in India to date. Sterlite Power is a global power transmission infrastructure developer and a provider of global products and services, with a footprint in India and Brazil.