Mumbai, July 7 (IANS): Power transmission solutions major Sterlite Technologies has sealed India's first foreign investment in power transmission with an agreement to raise Rs.500 crore from Standard Chartered Private Equity for funding its existing as well as new projects, the company said Monday.
"Sterlite Technologies has entered into agreements with Standard Chartered Private Equity for an equity investment of Rs.500 crore in Sterlite Power Grid Ventures Ltd. (SPGVL)," a release here said.
SPGVL, a subsidiary of Sterlite, will issue convertible securities to Standard Chartered Private Equity for a minority share.
"The proceeds will be used for equity contribution in existing as well as new power transmission projects. While there have been many foreign investments in the power generation sector, this would be the first foreign investment into India's power transmission sector," SPGVL chairman Pravin Agarwal said.
SPGVL is the largest private developer of power transmission systems in the country with a portfolio of six projects on build, own, operate and maintain (BOOM) basis spread across 10 states, the company said.
The first three projects, with over 2,000 km of transmission lines, and two 765/400 KV substations are in the final stages of completion, while the next three projects will start operating sequentially from fiscal 2017.
In September 2013, Sterlite energised the 400 KV D/C Purnia - Biharsharif line, a critical link between India's Eastern and Northern Grids, the release said.
"We believe that our partnership with the Sterlite group, a long standing and a highly valuable client of Standard Chartered Bank, will help the build-out and the strengthening of the transmission infrastructure in India," said Standard Chartered Private Equity India head Udai Dhawan.