Sterlite Power Buys SPV from PFC to Execute Large ISTS Project

Sterlite Power Buys SPV from PFC to Execute Large ISTS Project

Sterlite Power, a leading power transmission infrastructure developer, on Friday, said that it has acquired Vapi II North Lakhimpur Transmission Ltd (VNLTL), a Special Purpose Vehicle (SPV) from power sector lender PFC’s arm PFC Consulting Ltd.

Through this acquisition, the company is planning to execute a large inter-state transmission system (ISTS) project – Western Region Strengthening Scheme-XIX (WRSS-XIX) and North Eastern Region Strengthening Scheme-IX (NERSS-IX).

Sterlite had won this ISTS project via a tariff-based competitive bidding (TBCB) process, under the Build, Own, Operate and Maintain (BOOM) model for a period of 35 years.

Speaking about the significance of the deal, Pratik Agarwal, Managing Director, Sterlite Power, said that “integrating renewable energy to the grid is the need of the hour. This single project with its various sub-elements brings in clean and green energy from solar, nuclear and hydro for people across the western and northeastern region in India.”

He further added that “it will play a key role in decongesting the Navi Mumbai transmission corridor while catering to the ever-growing needs of the financial capital – Mumbai. Through such strategic projects, we are happy to be building renewable energy lifeline for the country.”

Under this Western Region Strengthening Scheme – XIX (WRSS-XIX) project, the company will set up 318 ckm of lines and 1,000 MVA of transformation capacity across 3 distinct parts:

Part A of the project involves setting up of 35 ckm lines in Gujarat to help distribute renewable energy being generated in the state to a wider set of consumers.

In Part B, the company aimed to establish a 1,000 MVA substation in Vapi along with 51 ckm of lines to bring clean nuclear power from Kakrapar Atomic Power Plant in Gujarat for further distribution across the Union Territories of Daman, Diu and Dadra Nagar Haveli.

Moreover, under Part C, it aimed to set up 179 ckm of lines for critical system strengthening and decongesting the evacuation system in the Navi Mumbai area. The link brings an ISTS feed of about 1,000 MW into the Mumbai region to cater to its growing energy requirements which is expected to increase owing to Navi Mumbai Airport and Navi Mumbai SEZ, coming up in the region.

On the other hand, the North Eastern Region Strengthening Scheme–IX (NERSS-IX) project will involve strengthening of the north-eastern transmission network by setting up of 85 ckm of lines in the states of Assam and Arunachal Pradesh.

The company said that this transmission system will facilitate the evacuation of hydropower from 110 MW pare hydro-electric project situated in Arunachal Pradesh, thereby playing an instrumental role in boosting the green energy agenda of the country.

Meanwhile, the company is already constructing its other transmission assets in the states of Maharashtra, Gujarat, Assam and Arunachal Pradesh, including critical corridors that are part of India’s Green Energy Corridor (GEC).

In March this year, the company has entered into a partnership with four major players in the EPC and OEM space, with an aim to execute it’s Green Energy Corridor (GEC) project – Lakadia Vadodara Transmission Project Ltd (LVTPL). These players include GE T&D India Ltd, Unitech Power Transmission Ltd (UPTL), Tata Projects Ltd (TPL) and Associate Power Structures Pvt. Ltd (APSPL).

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.