In a significant move towards bolstering India’s power transmission sector, Sterlite Power, a leading private developer in the field, has joined forces with GIC, an affiliate of one of the world’s largest sovereign wealth funds. The collaboration, marked by the signing of definitive agreements, aims to establish a robust platform dedicated to developing and operating power transmission projects across India.
Under the terms of the joint venture, Sterlite Power will hold a controlling stake of 51%, while GIC will possess the remaining 49% stake. This partnership underscores a mutual commitment to contribute to India’s ambitious renewable energy goals, particularly in light of the country’s vision to harness 500 GW of renewable power potential.
Pratik Agarwal, Managing Director of Sterlite Power, emphasised the pivotal role transmission infrastructure plays in realising India’s renewable energy aspirations. He expressed confidence in the joint venture’s ability to become a frontrunner in the country’s transmission sector, leveraging a substantial USD 13 billion bid pipeline. Agarwal reiterated Sterlite Power’s dedication to constructing top-tier assets aimed at facilitating the seamless delivery of clean energy, thereby addressing the pressing challenges in energy distribution.
Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, highlighted the strategic importance of transmission infrastructure in supporting India’s transition towards sustainable energy sources. Recognising India’s robust economic fundamentals and favourable demographics, Seng emphasised GIC’s long-term commitment to the Indian market. He cited the country’s burgeoning opportunities across various sectors, particularly in infrastructure development, as compelling factors for GIC’s involvement.
The transaction was facilitated by advisory teams representing both Sterlite Power and GIC. Sterlite Power received counsel from Deutsche Bank, AZB Partners, and Khaitan & Co., while GIC was advised by Avener Capital, Shardul Amarchand Mangaldas & Co., and PWC.
