Sembcorp Industries sells India unit to Omanese consortia for Rs 11,734 cr

New Delhi: Singaporean utility firm Sembcorp Industries on Monday announced the sale of its entire stake in its India unit to an Omanese consortium for Rs 11,734 crore as part of its decarbonisation drive.

The firm will sell 100 per cent of its shares in Sembcorp Energy India Ltd (SEIL) to Tanweer Infrastructure Pte Ltd, it said in a statement.

SEIL is one of the largest independent power producers in India, operating two coal-fired power plants with a combined capacity of 2,640 MW in Andhra Pradesh.

It also has a renewable energy portfolio of 1,730 MW, with another 700 MW under construction.

Tanweer will pay the acquisition price in deferred payments and Sembcorp will stay on board as a technical advisor on completion of the sale, the firm said.

Existing employees will be unaffected by the transfer.

At a media call, Vipul Tuli, CEO - South Asia, Sembcorp Industries, said the firm has no plans to exit India and this divestment will allow it to invest more in the renewable space in the country.

Sembcorp, he said, had in 2020 announced that it would not invest any further in coal-fired power projects. "We are very much sticking to that."

Post SEIL divestment, Sembcorp will continue to pursue opportunities in wind power generation, RTC power, storage and green hydrogen.

The deal is part of Sembcorp's strategy to decarbonise its operations and shift to green energy generation.

Tanweer Infrastructure is indirectly owned by a consortium led by Oman Investment Corporation S.A.O.C. (OIC) in partnership with the Ministry of Defence Pension Fund, Oman, one of Oman's largest pension funds with significant investments across power and infrastructure, and Dar Investment SPC.