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StanChart PE to invest `500 cr in Sterlite Tech power business

Standard Chartered Private Equity will invest Rs 500 crore in Sterlite Technologies power transmission infrastructure business for a minority stake. ‘Sterlite Technologies,    power transmission solutions provider...has entered into agreements with Standard Chartered Private Equity for an equity investment of Rs 500 crore in Sterlite Power Grid Ventures Ltd (SPGVL),’ Sterlite Technologies said in a statement.

SPGVL, a subsidiary of Sterlite, focused on the development and operations of power transmission projects, will issue convertible securities to Standard Chartered Private Equity for a minority share.
The proceeds will be used for equity contribution in existing as well as new power transmission projects. This would be the first foreign investment into India’s power transmission sector, the company said in the statement.

The first three projects of SPGVL with over 2,000 km of transmission lines are in final stages of completion, while the next three projects will start operating sequentially from financial 2017.
‘T&D is a clear bottleneck due to which many parts of the country are energy surplus while others remain power- deficient,’ said Pravin Agarwal, Chairman - SPGVL & Director - Sterlite Technologies Ltd.

‘We believe that our partnership with the Sterlite group will help the build-out and the strengthening of the transmission infrastructure in India,’ said Udai Dhawan, Managing Director and India Head of Standard Chartered Private Equity. Meanwhile, Vedanta Resources is mulling a 5 million tonnes per annum (mtpa) steel plant in Karnataka which may entail an investment of Rs 30,000 crore. The mining and metals conglomerate has already initiated a feasibility study for its proposed foray into the steel sector through a joint venture, but is yet to commence talks with a potential partner, said a source. ‘The company is looking at all opportunities to grow in iron and steel sector. As far as steel-making is concerned, it looks very serious about development of Bellary Steel.


‘simple regulatory framework to help India attract investment’
Implementation of simple regulatory framework and adherence to commitments will help India attract investments in natural resources sector, Vedanta Resources Chairman Anil Agarwal said.
‘India is a country richly endowed with world’s largest reserve of natural resources and in today’s context, possesses the potential to add $1 trillion to the growth of the Indian economy over a period of few years and in turn, create millions of job opportunities,’ he said in his expectation from the government.

The key to this simple revolution lies in implementing a simple regulatory framework, based on a transparent structure of policies and regulations and a faithful adherence to commitments to attract investments. ‘I am sure this will attract many more companies willing to work in India, to explore and harness the vast reserve of natural resources to the benefit of the Indian economy,’ he said.
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