Sterlite Power achieves financial closure for Neemrana II Kotputli Transmission Project
Sterlite Power, a prominent Indian power transmission company, has announced the successful financial closure of its Neemrana II Kotputli Transmission Limited (NKTL) project, securing a substantial funding of INR 1373 crore from Power Finance Corporation (PFC), a Maharatna Public Sector Enterprise. This achievement marks a significant milestone in the development of a key green energy corridor project in India.
Funding Secured for Major Green Energy Project
The funding agreement with PFC underscores the financial institution’s confidence in Sterlite Power’s ability to execute complex and impactful transmission projects. Raji George, Director of Corporate Finance at Sterlite Power, expressed satisfaction with the partnership, noting, “This deal is a show of trust by PFC in our capability to deliver some of the most challenging and impactful transmission projects in the country.”
Neemrana II Kotputli Transmission Project Details and Impact
Acquired in November 2023, the Neemrana II Kotputli Transmission Limited Special Purpose Vehicle (SPV) was established to build, own, operate, and transfer a green energy corridor project over a 35-year period. The project includes constructing a state-of-the-art 6000 MVA, 765/400kV substation at Neemrana and a 400 kV transmission line network extending approximately 250 kilometers. This network is crucial for establishing vital interconnections between the Neemrana and existing Kotputli substations and will facilitate a Line-In Line-Out (LILO) integration of the Neemrana II substation with the Gurgaon and Sohna substations.
Sterlite Power secures INR 1373 crore from PFC for the Neemrana II Kotputli Transmission project, enhancing India’s green energy capabilities.
Track Record of Financial Milestones
Sterlite Power’s consistent ability to secure financial closures shortly after SPV acquisitions is well recognized within the industry. Earlier in February 2024, the company also completed funding for another major project, Beawar Transmission Limited, through REC Power Development and Consultancy Limited, demonstrating the continued trust and confidence of the banking and investment community in Sterlite Power’s projects.
The financial closure of the NKTL project is a testament to Sterlite Power’s robust project execution and financial strategy. The collaboration with PFC not only provides the necessary capital for this significant infrastructure project but also reinforces Sterlite Power’s position as a leader in India’s energy sector, particularly in the development of renewable energy transmission capabilities.
This strategic development is expected to significantly enhance the power infrastructure in India, contributing to the nation’s energy security and supporting the transition to sustainable energy sources.
Further Developments and Innovations
As Sterlite Power continues to expand its portfolio of high-impact energy projects, the successful financial closures like that of the NKTL project serve as critical enablers for the company’s long-term strategic goals, fostering growth in the renewable energy sector across the region.