Global power transmission company Sterlite Power has secured funding of Rs20.7bn ($281m) for its Vapi II North Lakhimpur Transmission (VNLTL) project in India.
The debt financing was provided by Indian financial institution Power Finance Corporation (PFC).
In June, the company acquired the VNLTL project, and within four months of acquisition, it secured funding for the project.
The project will see the establishment of inter-state transmission system covering Western Region Strengthening Scheme-XIX (WRSS-XIX) and North Eastern Region Strengthening Scheme-IX (NERSS-IX).
Upon completion, through different sub-elements, it will supply clean energy from renewable energy sources such as solar, nuclear and hydropower to the western and northeastern regions of India.
Additionally, the project could see the installation of 179km of transmission lines for decongesting the Navi Mumbai transmission corridor by bringing in an inter-state transmission feed of about 1,000MW.
The new transmission link aims to meet the energy requirements in the region, with Navi Mumbai Airport and Special Economic Zone (SEZ) coming up in the area.
Sterlite Power managing director Pratik Agarwal 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 the transportation of renewable energy.”
In another development in India, the board of state-owned hydropower company NHPC has approved the merger of Lanco Teesta Hydro Power into the company.
NHPC is said to have secured the 500MW Teesta VI hydropower project under corporate insolvency resolution process.