Sterlite Power, a leading power transmission developer and solutions provider in India and Brazil, has achieved financial closure for its Kishtwar Transmission Limited (KTL) project located in J&K. It has successfully secured the entire debt funding of INR 305 crores from Aseem Infrastructure Finance Ltd. – an NBFC–IFC (Infrastructure Finance Company), promoted by the Strategic Opportunity Fund (SOF) of National Investment and Infrastructure Fund (NIIF), with anchor investments from Government of India and Japan’s Sumitomo Mitsui Banking Corporation (SMBC).
Sterlite Power acquired the KTL SPV in December 2022 to execute the inter-state transmission system project. The project involves construction of a transmission system comprising of a 400/132kV GIS substation at Kishtwar and a 400 kV transmission line from Kishenpur to Dulhasti. The transmission system will aid evacuation of 1000MW of power from Pakaldul Hydro Electric Project to the Kishtwar substation.
Apart from bringing additional power flow, it will also help in decongesting the downstream networks in the region, improving the quality and reliability of power flow in Kashmir valley.
Commenting on the financial milestone, Akshay Hiranandani, Executive Director- Corporate Finance, Sterlite Power said, “We are pleased to conclude this deal with Aseem Infrastructure Finance Limited in record time. We are proud to play a role in providing reliable power and building a secure energy future for J&K. This will be our second project in the region after delivering the mega NRSS Kashmir project ahead of schedule.”
Virender Pankaj, CEO, Aseem Infrastructure Finance Ltd., said: “Aseem Infra is glad to have supported Sterlite Power by providing long-term debt financing for the Kishtwar project which would contribute immensely to the infrastructure growth story of J&K. The debt solution was structured in a manner so as to balance the unique requirements of all the stakeholders involved while delivering a swift TAT. In line with its vision to help create a futuristic India through transformative infrastructure financing, Aseem has been making rapid strides as reflected in its high-quality asset book crossing INR 10,000 crores mark in 25 months of operations.”
Sterlite Power has a strong track record of executing complex projects successfully and has set new benchmarks in the industry by use of cutting-edge technologies and innovative financing. Despite the weak market conditions owing to the pandemic, the company has been successful in forging relationships with India’s leading financial institutions – a testimony of the continued trust reposed on the company by the banking and investor community.