Sterlite Secures ₹13.7 Billion from PFC for Green Corridor Project

Power transmission company Sterlite Power has achieved financial closure for its Neemrana II Kotputli Transmission project by securing ₹13.73 billion (~$164.85 million) funding from Power Finance Corporation (PFC).

Sterlite Power acquired the Neemrana II Kotputli Transmission special purpose vehicle in November 2023 to execute the green energy corridor on a build, own, operate, and transfer basis for 35 years.

The project involves developing two critical components: a 6000 MVA, 765/400kV substation at Neemrana and a 400 kV transmission line network spanning approximately 250 kilometers.

This network will link the Neemrana substation to the existing Kotputli substation while also facilitating a line-in line-out that will integrate the Neemrana II substation with the Gurgaon and Sohna substations through the existing Gurgaon-Sohna line.

Commenting on this milestone, Raji George, Director-Corporate Finance, Sterlite Power, said, “We are pleased to conclude the financial deal for one of our largest GEC projects with one of India’s largest and most reputed financial institution in the power sector–PFC. This deal is a show of trust by PFC in our capability to deliver some of the most challenging and impactful transmission projects in the country.”

Recently, Sterlite Power and Singapore-based investment firm GIC announced the creation of a joint venture that will focus on developing and operating power transmission projects across the country to meet the rapidly growing demand for energy evacuation. Under the agreement, Sterlite Power will hold a 51% majority stake in the new company, while GIC will own the remaining 49%.

Last November, Sterlite Power won the order for Phase-IV (Part-1-Bikaner Complex): Part-B Transmission project to evacuate 8 GW of renewable energy in Rajasthan. The company will develop a 6,000 MVA, 765/400kV substation at Neemrana, and two 400 kV transmission lines spanning 250 km as part of the project.

In an interview with Mercom, Sterlite Power CEO of Infrastructure Business, Arun Sharma, had said that the Indian government has planned to build transmission infrastructure, estimated to cost ₹2.44 trillion (~$29.3 billion), which will involve the construction of 50,890 circuit km of transmission lines and 4,33,575 MVA of substation capacity.

Sterlite has a portfolio of 33 completed, sold, and under-construction power transmission projects covering approximately 16,529 circuit km of transmission lines across India and Brazil. In India, Sterlite Power has about ₹2 billion worth of projects under management.

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