The projects are at various stages of construction and will evacuate power from multiple renewable energy generation projects in the country, Sterlite Power managing director Pratik Agarwal said. The partners 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 $500 million, the statement said.
Due to years of underinvestment in transmission capacity there is significant demand for investment, and the government has been promoting the participation of the private sector in transmission line development through the continued implementation of supportive regulatory reforms, Agarwal said. Sterlite Power It has won a third of all inter-state private transmission projects awarded in India under competitive bidding since 2011. It has completed and sold nine transmission assets in India.
Sharat Goyal, Head of India, Infrastructure Equity at AMP Capital said: “India is a key target market for AMP Capital and we have dedicated time and resources to finding a compelling investment opportunity suited to our clients. This investment capitalises on the opportunity presented by the Indian infrastructure sector at this time, as well as benefitting from policy initiatives like Infrastructure Investment Trusts (INVITs) which have created transparent, market-driven exit opportunities for investors willing to invest capital in the development of greenfield infrastructure projects in India.”
