A 50:50 partnership has been announced by Australia-based investment manager AMP Capital, with Sterlite Power, a power transmission infrastructure developer in India. Both companies will invest $150 million each to develop four transmission projects in the country; and also bring in debt financing with a total capital outlay of about $1 billion. Nearly 1,800 km of transmission lines have been planned across the southern, western, and northeastern regions of the country.
AMP Capital has stated that the overall investment size can reach up to $500 million as both companies may contribute more capital in the future for new interstate transmission projects. It is expected that the investment will create valuable transmission assets, supported by long-term contracts and will attract yield-seeking investors through a robust payment security framework. The transmission projects will help in the evacuation of power from renewable energy projects.
Sterlite Power reported that the move is driven by their core purpose of enabling access to reliable power while minimising the impact on climate change. In August 2020, Sterlite Power had reported selling a 14.7 per cent stake in the India Grid Trust for Rs 8.4 billion to institutional and high net-worth individual investors. Similarly, the company had also acquired a special purpose vehicle of PFC Consulting Limited, to execute a large interstate transmission system strengthening project.