Currently, SPTL is in the process of separating its operations into two distinct businesses. One segment will be responsible for managing the infrastructure division, focusing on the development and operation of power transmission assets through a build-operate-transfer (BOT) model.
Sterlite Power Transmission Limited, a part of the Vedanta Group, and Singapore's sovereign wealth fund, GIC, have come together to establish a $1 billion joint venture platform. This partnership aims to capitalize on the increasing demand for power evacuation networks driven by the renewable energy surge in the country, as reported by the Economic Times on Wednesday.
According to information provided by the company, Sterlite Power, under the control of billionaire Anil Agarwal, has successfully completed or is in the process of executing over 34,000 kilometers of OPGW (optical ground wire) communication projects, encompassing 108 crucial corridors across 15 states, all under live line conditions.
Additionally, the company is a prominent producer of power cables, conductors, and OPGW, catering to major Indian states and private utilities, as well as exporting its products to over 60 countries. It maintains manufacturing facilities in Silvassa, Jharsuguda, and Haridwar.
Sterlite Power's Global Infrastructure division is actively engaged in tendering, designing, building, owning, and operating power transmission assets, with ongoing operations in both India and Brazil.
As per Crisil's data, Sterlite Power holds a 31.5 percent market share in terms of the tariff for inter-state projects awarded through competitive bidding in India.
Currently, SPTL is in the process of segregating its operations into two distinct entities. One segment will focus on the infrastructure division, responsible for the development and operation of power transmission assets under build-operate-transfer (BOT) agreements, typically spanning 30-year concessionaire contracts. These assets are typically provided on a turnkey basis to third-party buyers, including state transmission utilities.
GIC plans to invest $500 million in the infrastructure business, securing a 49 percent stake. The investment will be phased, with an initial $100 million infusion and an additional $400 million to be injected over the next two to three years, contingent on project requirements and Sterlite Power's successful bids for transmission projects and planned capital expenditures.
Concurrently, Sterlite Power will transfer four assets valued at Rs 6,000 crore ($722.60 million) into this newly established venture.
In addition, the company plans to invest approximately Rs 1,700 to Rs 2,500 crore in cash over a similar two-to-three-year period to maintain its 51 percent stake in the partnership.
GIC aims to be Sterlite's exclusive partner in India's transmission sector to capture a larger market share, with annual cumulative projects worth Rs 10,000-12,000 crore bid out each year from 2010 to 2022.
Sterlite Power sponsors India's first power sector InvIT, India Grid Trust (IndiGrid), led by Managing Director Pratik Agarwal, who is Anil Agarwal's nephew.
In September 2022, the company withdrew its DRHP and postponed its listing due to unfavorable market conditions.
In August, Sterlite Power acquired Fatehgarh III Beawar Transmission, a special-purpose vehicle, from PFC Consulting Limited, a subsidiary of Power Finance Corporation Limited.
"Sterlite Power has purchased the Fatehgarh III Beawar Transmission Project in Rajasthan from PFC. The project was secured by Sterlite Power through a tariff-based competitive bidding process in March 2023," the company announced in a statement.