Sterlite partners with Amp Capital to build 4 transmission projects

Electricity transmission infrastructure company Sterlite Power has established a 50:50 partnership with global investment manager AMP Capital to develop four transmission projects in the country. AMP Capital and Sterlite Power will invest $150 million each on the development of 1,800 km of transmission lines.

The partnership has the potential to reach an overall investment size of $500 million, as the “partners may in the future contribute further capital for new inter-state transmission projects which are expected to be tendered by the government of India,” the companies said in a statement.

Amp Capital, owned by Australia-based AMP, has $21 billion infrastructure equity and debt assets under management. “This investment capitalises on the opportunity presented by the Indian infrastructure sector at this time, as well as benefitting from policy initiatives like infrastructure investment trusts (InvIt) which have created transparent, market-driven exit opportunities for investors willing to invest capital in the development of greenfield infrastructure projects in India,” Sharat Goyal, head of India, infrastructure equity at AMP Capital said.

Sterlite Power managing director Pratik Agarwal said, “We are happy to have like-minded partners like AMP Capital who believe in our core purpose and in our model of sustainable development”. Globally, Sterlite has developed power transmission infrastructure projects of over 13,700 circuit km.

In August, Sterlite had announced the sale of its 14.7% stake in India Grid Trust InvIt for Rs 840 crore. Sterlite Power had sold eight assets worth about Rs 11,500 crore to IndiGrid. Another Rs 6,500 crore is likely to be transferred in the current financial year.