Mumbai, 21 October 2020.
Sterlite Power, a leading global power transmission player, has achieved financial closure for its Vapi II North Lakhimpur Transmission Limited (VNLTL) project by securing the entire debt funding of INR 2070 crores from one of India’s largest power sector lenders, Power Finance Corporation Limited (PFC Ltd.). The financial closure is achieved within four months of the SPV acquisition of the project.
Sterlite Power acquired VNLTL SPV in June 2020 to execute one of the largest inter-state transmission system projects covering Western Region Strengthening Scheme-XIX (WRSS-XIX) and North Eastern Region Strengthening Scheme-IX (NERSS-IX). This single project, with its various sub-elements, will supply clean and green energy from solar, nuclear and hydro power to the western and north eastern region of India.
Further, this project aims to set up 179 ckm of lines for critical system strengthening to decongest the Navi Mumbai transmission corridor by bringing in an inter-state transmission feed of about 1,000 MW. This link will cater to the growing energy requirements in the region owing to the upcoming Navi Mumbai Airport and Special Economic Zone (SEZ).
Commenting on the financial milestone, Mr. Pratik Agarwal, Managing Director, Sterlite Power said, “We are pleased to conclude this mega financial deal with one of India’s largest and most reputed financial institution in the power sector – PFC, amidst a tough market situation. This deal is a huge show of trust by PFC in our capability to deliver some of the most challenging and impactful transmission projects in the country.”
He further added, “Earlier this month, we also inducted REC Ltd. as the Lead Lender for LVTPL, our Green Energy Corridor project. We are an active proponent of greening the grid, and we see about 80 per cent of our new projects to be linked to transportation of renewable energy.”
Sterlite Power with its strong track record has successfully achieved financial closure of many of its projects despite the weak market conditions owing to the pandemic. Earlier in July 2020, the company had refinanced its Gurgaon Palwal Transmission project with India’s leading financial institution – HDFC Bank. In Oct 2020, it introduced REC Ltd. as the lead lender for its Green Energy Corridor project – LVTPL. Now with the closure of funding for VNLTL from PFC, the company has been able to forge relationships with India’s largest power sector financing institutions. This is a testimony of the continued trust reposed on the company by the banking and investor community.