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.
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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 3 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.
