To draw on the rising demand for power evacuation networks in the country, Sterlite Power Transmission (SPTL) is collaborating with Singapore’s sovereign wealth fund, GIC, to set up a $1-billion joint venture platform, according to a report by The Economic Times (ET). Sterlite Power Transmission (SPTL) is a privately held Vedanta Group firm.
At the present moment, SPTL is in the process of separating into two businesses. One business will house the infrastructure division that develops and operates power transmission assets on a build-operate-transfer (BOT) basis. The other part will accommodate the domestic production business of cables and conductors.
GIC will put up $500 million in the infrastructure business for a 49 per cent stake. The deployment of funds will take place in tranches, with an initial $100 million and $400 million to come in over the next two to three years on a need-to-draw-down basis. This investment will depend on Sterlite Power winning project tenders.