Sterlite Power Secures Rs 440 Cr Debt Funding from Tata Cleantech for NBTL Transmission Project

Global power transmission infrastructure developer Sterlite Power Transmission Ltd has secured the entire debt funding of Rs 440 crore from Tata Cleantech Capital for its Nangalbibra - Bongaigaon Transmission Ltd (NBTL) project.

Tata Cleantech Capital is the first private sector climate finance institution in the Green Banking Network.

The New Delhi-headquartered company has achieved financial closure within two months timeframe of the special purpose vehicle (SPV) acquisition of the project.

Commenting on achieving the financial milestone, Pratik Agarwal, Managing Director of Sterlite Power said, “we are pleased to conclude this deal with Tata Cleantech Capital which is a first-of-its-kind climate finance institution that is working towards climate change mitigation in India. Sterlite Power is an active proponent of greening the grid, and we are committed to India’s ambitious RE goal of 500 GW by 2030.”

The company has acquired the NBTL SPV in December last year to execute the inter-state transmission system (ISTS) project, which involves the construction of ~300 ckt km of transmission lines and a greenfield substation with 320 MVA transformation capacity across the North-Eastern terrain of Assam and Meghalaya.
 
“India’s power transmission sector is playing a critical role in the country’s transition to a net-zero carbon future. Our objective at Tata Cleantech Capital is to support and invest in green energy sectors and the long-term financing of this project is a step in that direction,” said Manish Chourasia, Managing Director of Tata Cleantech Capital Ltd.
 
Sterlite Power has a strong track record of executing complex projects successfully and has set new benchmarks in the industry by the 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.
 
The NBTL project will transmit over 1 GW of power from Assam to the western parts of Meghalaya. 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 North-East India.