Sterlite Power has achieved financial closure for its Vapi II North Lakhimpur Transmission Ltd (VNLTL) project, the company said in a release.
The financial closure was achieved with Sterlite Power securing the debt funding of Rs.2070 crore from PFC Ltd (formerly Power Finance Corporation Ltd), one of India’s largest power sector lenders.
Sterlite Power said that the financial closure was achieved within four months of acquiring the special purpose vehicle (SPV) of the project.
Sterlite Power acquired VNLTL SPV in June 2020 to execute one of the largest inter-state transmission system projects covering Western Region Strengthening Scheme-XIX (WRSS-XIX) and North Eastern Region Strengthening Scheme-IX (NERSS-IX).
This single project, with its various sub-elements, will supply clean and green energy from solar, nuclear and hydro power to the western and north eastern region of India.
This project envisages 179 circuit km (ckm) of lines for critical system strengthening to decongest the Navi Mumbai transmission corridor by bringing in an inter-state transmission feed of about 1,000 mw. This link will cater to the growing energy requirements in the region owing to the upcoming Navi Mumbai Airport and Special Economic Zone (SEZ).
Commenting on the financial milestone, Pratik Agarwal, Managing Director, Sterlite Power said, “We are pleased to conclude this mega financial deal with one of India’s largest and most reputed financial institution in the power sector – PFC, amidst a tough market situation. This deal is a huge show of trust by PFC in our capability to deliver some of the most challenging and impactful transmission projects in the country.”
“Earlier this month, we also inducted REC Ltd. as the Lead Lender for LVTPL, our Green Energy Corridor project. We are an active proponent of greening the grid, and we see about 80 per cent of our new projects to be linked to transportation of renewable energy,” Agarwal added.
Financial closures amidst weak markets
Sterlite Power, it may be mentioned, successfully achieved financial closure of many of its projects despite the weak market conditions owing to the pandemic:
- In July this year, the company refinanced its Gurgaon Palwal Transmission project with India’s leading financial institution – HDFC Bank.
- In October 2020 itself, it introduced REC Ltd as the lead lender for its Green Energy Corridor project – LVTPL (Lakhadi Vadodara Transmission Project Ltd).
- Now with the closure of funding for VNLTL from PFC, the company has been able to forge relationships with India’s largest power sector financing institutions, Sterlite Power said in the release.
(Featured photograph for representation only)
