Sterlite Power and GIC to Form $1 Billion Joint Venture for Power Transmission Projects

Sterlite Power Transmission Ltd (SPTL), a subsidiary of the Vedanta Group, is teaming up with Singapore’s sovereign wealth fund GIC to establish a $1 billion joint venture dedicated to India’s power transmission sector, according to sources familiar with the matter.

Under the agreement, GIC will inject $500 million into the joint venture, acquiring a 49% stake, while Sterlite Power will contribute a matching amount for a 51% stake. An official announcement from both parties is expected imminently.

This collaboration follows initial reports by ET on October 25, indicating discussions between the two entities regarding a potential partnership.

Pratik Agarwal, Managing Director of SPTL, confirmed the development, stating that GIC will be investing in a special purpose vehicle (SPV) housing all under-construction projects of SPTL. Initially, the SPV will oversee five projects, with the potential for further expansion in the future.

The joint venture aims to invest an additional $1 billion in equity to expand its asset base to over ₹30,000 crore. Sterlite Power plans to transfer four operational assets valued at approximately ₹7,500 crore into the JV, including two projects in Rajasthan and one each in Assam and Kashmir. These transmission corridors are designed to accommodate 1,000-2,000 MW of power.

Agarwal highlighted the robust pipeline within the transmission sector, especially in comparison to other industries like renewables. With India targeting a substantial reduction in carbon intensity and a significant increase in renewable energy usage by 2030, there is a pressing need for the modernization and expansion of the national transmission grid.

As of press time, GIC had not responded to inquiries sent via email.