AMP Capital and Sterlite Power to Jointly Develop Power Transmission Projects in India
Summary
Australia-based investment manager AMP Capital announced that it has established a 50:50 partnership with power transmission infrastructure developer Sterlite Power to develop power transmission projects in India.The two companies will initially invest around $150 million each to develop four transmission projects in the country. They will also bring in debt financing with a total capital outlay of about $1 billion, the companies said in a press release.The projects will have a circuit length of nearly 1,800 kilometers of transmission lines, spread across the southern, western, and northeastern regions of the country.AMP Capital said that the projects would enhance the countrys power delivery infrastructure by providing the necessary infrastructure for energy evacuation from multiple renewable energy generation projects.The company stated that the partnerships overall investment size could reach $500 million as both companies may contribute more capital in the future for new interstate transmission projects, which will be tendered by the central government.Our investment will create a pool of valuable transmission assets, with long-term contractual arrangements and a robust payment security framework, which are attractive to yield-seeking investors, said Sharat Goyal, Head of India, Infrastructure Equity at AMP Capital.