Sembcorp Industries has increased its shareholding from 49% to 65% in Thermal Powertech Corporation India (TPCIL).
The total investment, which has been financed by a mix of internal funds and borrowings, amounts to approximately INR4bn ($66.6m) for the incremental 16% stake.
With the increase in stake, TPCIL will become a unit of Sembcorp while the remaining 35% stake in TPCIL is owned by Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects.
Currently, TPCIL is developing a 1,320MW coal-fired power plant in Krishnapatnam, SPSR Nellore District, Andhra Pradesh, India.
The 1,320MW coal-fired power plant’s first unit is scheduled to commerce commercial operations in the fourth quarter of 2014 while the second unit is slated to be completed in 2015.
Currently, Sembcorp has two power projects with a total capacity of 2,640MW in India.
The projects include the TPCIL project and another 1,320MW coal-fired power plant, which is under development by NCC Power Projects.
Earlier in 2014, Sembcorp Industries, through its wholly-owned subsidiary, had signed a conditional agreement to acquire 45% of NCC Power Projects (NCCPP).
Sembcorp’s investment for the stake will amount to approximately INR8.5bn (around $175m).
NCCPP is jointly owned by Gayatri Energy Ventures and NCC Infrastructure Holdings (NCCIHL) and upon completion of the transaction, Sembcorp will have 45% of NCCPP and the remaining 55% by NCCIHL.
By using supercritical technology, the NCCPP power plant allows for enhanced efficiency and reduced emissions when compared to other conventional plants.
Image: Sembcorp’s stake increases to 65% in Thermal Powertech. Photo: John Kasawa / freedigitalphotos.net.