GIC will invest $500 million in the JV for a 49% stake while Sterlite Power will deploy a similar amount for a 51% stake. Both companies are likely to make a formal announcement shortly, the people said.
ET was the first to report on October 25 that the two sides were in talks for an alliance.
Confirming the development, Pratik Agarwal, managing director, SPTL said, “GIC is coming into a special purpose vehicle which will own all the under-construction projects of SPTL. Initially, it will have five projects. And then as we go along, we’ll keep adding more and more projects.” He declined to comment on financial details of the transactions.
The people cited above said the platform will invest about $1 billion of additional equity in the future to increase the assets under management to over ₹30,000 crore.
Sterlite Power would transfer four operational assets with a cumulative project cost of about ₹7,500 crores into this JV, pursuant to closure of the deal. Two assets are located in Rajasthan, and one each in Assam and Kashmir. These transmission corridors will be designed to evacuate 1,000-2,000 MW.
Agarwal said the transmission sector has the most robust pipeline compared to other sectors, including renewables.
India is targeting to reduce the carbon intensity of the economy by over 45% by the end of this decade and also achieve 50% of its cumulative electric power from renewables by 2030. To attain these goals, the national transmission grid needs to be significantly upgraded to support the widespread adoption of renewable energy.
GIC did not respond to an email till press time.
