GIC and Sterlite Power have created a platform to develop and operate power transmission projects in India.
Sterlite Power will own a 51% interest in the partnership with a GIC affiliate holding the remaining 49% stake.
The joint venture, was first mooted last year but a definitive agreement was signed this week.
In its draft National Electricity Plan, India’s Central Electricity Authority said the country required an estimated expenditure of INR4.7trn (€52bn) between 2022 and 2027, to implement additional interstate and intra-state transmission systems in the country.
Pratik Agarwal, managing director, Sterlite Power, said: “India’s renewable vision calls for investments in transmission to unlock the full potential of 500GW of renewable power. This joint venture signals global confidence in India’s growth vision.
“With GIC as our partner, we are poised to play a leading role in India’s transmission sector, starting with the US$13bn (€12bn) bid pipeline.”
In India, Sterlite Power has over US$2bn worth of projects under management.
Ang Eng Seng, chief investment officer of infrastructure at GIC, said: “We believe transmission infrastructure will play a crucial role in facilitating the growth of renewable energy supply to sustainably meet the increasing power demand in the country.”
Ang added that India was a key long-term market for GIC given its strong economic fundamentals and favourable demographics, which were spurring opportunities in many sectors including infrastructure development.
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