AMP Capital and Sterlite Power Transmission have teamed up to invest $150m (€120m) each to develop energy transmission projects in India.
The pair have established an equal partnership which enables each member to invest the initial amount to help develop four transmission projects and have also put in place debt financing, which represents a total capital outlay of $1bn.
The partners said they may in the future contribute further capital for new inter-state transmission projects which are expected to be tendered by the government of India.
“Therefore, the partnership has the potential to reach an overall investment size of $500m,” the companies said in a joint statement.
Sterlite Power is a developer of power transmission infrastructure with projects in India and Brazil, but for AMP Capital, the venture marks the investment manager’s first investment in India for its global infrastructure equity strategy.
Sharat Goyal, head of India, infrastructure equity at AMP Capital said: “Our investment will create a pool of valuable transmission assets, with long-term contractual arrangements and a robust payment security framework, which are extremely attractive to yield-seeking investors.
“India is a key target market for AMP Capital and we have dedicated time and resource to finding a compelling investment opportunity suited to our clients.”
Anuraag Srivastava, CFO Sterlite Power, said: “We are delighted to enter into a partnership with AMP Capital – a leading global infrastructure private equity firm. This investment is another testimony of continued trust reposed on us by the investor community.”
Pratik Agarwal, managing director, Sterlite Power said: “The world is undergoing a clean-energy revolution and India is leading this effort with its mammoth target of 450GW by the year 2030.
“Sterlite Power will contribute towards this noble cause by creating the required transmission infrastructure so that green energy can reach the most underserved households.”
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