Power transmission solutions provider Sterlite Grid 32 Ltd (SGL32) announced on Monday that it has successfully raised Rs 2,450 crore through listed non-convertible debentures (NCDs) to refinance its Mumbai Urja Marg Ltd project. The successful bidders for these NCDs, which are now listed on the Bombay Stock Exchange (BSE), include the National Bank for Financing Infrastructure and Development (NaBFID) and India Infrastructure Finance Company Limited (IIFCL). This issuance marks the first listed NCD of Sterlite Grid 32 Limited following its joint venture with Singapore’s GIC. These NCDs have received a rating of AA+ stable from CRISIL Ratings.
Highlights
About the Infrastructure Business Transition
The infrastructure division of Sterlite Power Transmission Ltd was demerged into Sterlite Grid 5 Limited (SGL5) effective from October 8, 2024. Recently, SGL5 formed a joint venture with GIC of Singapore, enabling SGL5 to conduct all transmission projects in India through Sterlite Grid 32 Limited (SGL32).
Pratik Agarwal, Director at Sterlite Grid 32 Ltd, stated that the joint venture provides access to a robust alternative funding source, allowing the company to diversify its financing approach from traditional debt to debt capital market financing. He expressed that, “This precedent-setting transaction marks a significant achievement for the business, showcasing our ability to secure cost-efficient financing while maintaining strong investor confidence.”
Project Overview
The joint venture platform secured the MUML project in June 2020 via tariff-based competitive bidding to undertake the green energy corridor project on a BOOM (build, own, operate, maintain) model for 35 years. The MUML project has developed a transmission system that spans the western and northeastern regions, covering Maharashtra, Gujarat, Assam, and Arunachal Pradesh.
Significance of the MUML Project
This project is vital for enhancing the transmission network in the Mumbai Metropolitan Region, with the capacity to transmit over 2,000 MW of additional power to both Mumbai and Navi Mumbai. According to SGL32, the successful closure of the Rs 2,450 crore funding reflects the confidence in India’s rapidly growing renewable power sector. As India constructs significant green capacity, integrating it seamlessly with the national grid is essential.
The MUML project will be instrumental in facilitating the evacuation of 20 GW of renewable energy from Rajasthan.
SGL32’s Project Portfolio
Sterlite Grid 32 Limited currently maintains a portfolio of ten power transmission projects that are either completed or under construction across eight states, including:
– Rajasthan
– Gujarat
– Jammu & Kashmir
– Karnataka
– Haryana
– Maharashtra
– Goa
– Kerala
SGL32’s footprint in India encompasses approximately 4,500 km of transmission lines with a total capital expenditure amounting to Rs 25,000 crore.
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