Powergrid to transfer assets worth Rs 75 billion to PGInvIT in 2023 (India)
Power Grid Corporation of India Limited (Powergrid) is planning to transfer transmission assets worth Rs 75 billion to the PowerGrid infrastructure investment trust (PGInvIT) in 2022-23. The company has identified large assets, including the Power Grid Southern InÂterÂconnector TraÂnÂsÂmission System project and the NagaÂpattinam MadhuÂgiri Transmission LimiÂted project, valued at Rs 50 billion for the transfer, along with its 26 per cent stake in an existing special purpose vehicle (SPV), Powergrid Vizag TransÂmiÂssion LiÂmited. The company is also open to evaluating the transfer of cost-plus or RTM projects to the InvIT as part of the goverÂnment’s Rs 42.5 billion National MonetiÂsaÂtion PipeÂline (NMP) programme.
SEBI approves Sterlite Power’s IPO to raise Rs 12.5 billion
The Securities and Exchange Board of India (SEBI) has approved Sterlite Power’s initial public offering (IPO) to raise arouÂnd Rs 12.5 billion. Sterlite Power had filed the draft documents with the market regulator in August 2021. The proposed IPO will comprise a fresh issue of equity shÂares with a face value of Rs 2 each, aggÂreÂgating Rs 12.5 billion. The company will leverage the proceeds from the issue for debt repayment of the firm and its arm, Khargone Transmission Limited, and geÂneral corporate purposes.
West Bengal secures $135 million loan from The World Bank for rural power distribution
West Bengal has secured a loan worth $135 million from the International BaÂnk for Reconstruction and DevelopÂment to improve the operational efficiency and reliability of electricity supply in select pockets in the state. The variable spread loan or floating interest loan will have a maturity of 17 years, including a grace period of seven years. The West Bengal Electricity Distribution and Grid MoÂderÂnisation Project aims to reduce distribution system losses, increase the capacity of the distribution network to meet the growing load demand, improve ovÂerall system reliability, make the network reÂsilient to climate disasters, and imÂÂprove the institutional capacity of West Bengal State Electricity DistribuÂtiÂon Company Limited.
RIL raises green loan of $736 million to fund REC Solar’s acquisition
Reliance Industries Limited (RIL) has raised a green loan of $736 million to finÂanÂce its largest overseas purchase, REC Solar Holdings, in Norway. This is RIL’s maiden green loan and is split into a $250 million six-year term borrowing, a $150 million working capital loan and a $336 million five-year bank guarantee. The debt funding was extended by the AuÂsÂtralia and New Zealand Banking GrÂoup, Credit Agricole, DBS Bank, HSBC and Mitsubishi UFJ Financial Group.
Adani Transmission signs agreement to acÂquire MPSEZ Utilities for Rs 1.16 billion
Adani Transmission Limited (ATL) has signed a share purchase agreement with Adani Ports and Special Economic Zone to acquire MPSEZ Utilities Limited (MUL) for Rs 1.16 billion. ATL will acquire 13,135,000 (100 per cent) equity shares of Rs 10 each of MUL. MUL’s total distribution network currently stands at around 100 km, comprising 75 km of underground lines and 25 km of overhead lines.
CCI approves acquisition of 40 per cent stake in Sterling and Wilson Renewable Energy by RIL
The Competition Commission of India (CCI) has approved the acquisition of stake in Sterling and Wilson Renewable EnÂÂergy Limited (SWREL) by RIL’s wholly owned subsidiary Reliance New Energy Solar Limited (RNESL). The deal envisages the acquisition of 40 per cent equity share capital of SWREL (formally Sterling and Wilson Solar Limited) by RNESL. HoÂwÂÂever, the acquisition can go up to 51.07 per cent of the equity share capital in the event of full acceptance of the open offer.
PFC signs agreement to finance 350 electric buses in Uttar Pradesh
PFC Limited has signed an agreement to lend Rs 2.75 billion for the deployment of 350 e-buses across nine cities of Uttar Pradesh. The agreement was signed with GreenCell Mobility, an e-mobility platform supported by the Indian and UK goÂvernments to boost the adoption of electric vehicles in the country. The buses will be deployed in the cities of Agra, Meerut, Aligarh, Bareilly, GhaziaÂbad, Mathura, among others.
REC avails ODA loan of $169.5 million from KfW Development Bank
REC Limited has signed an agreement with KfW Development Bank to avail official development assistance (ODA) term loan of $169.5 million under the Indo-German Bilateral Partnership. The ODA loan will be deployed for part financing of innovative solar PV-based generation projects in India at competitive interest rates. This is the fifth credit line signed between REC Limited and KfW for financing of power sector projects and third credit line for financing of renewable energy projects.
ADB approves $600 million loan to finance power grid and clean energy projects (Java)
The Asian Development Bank (ADB) has authorised a $600 million loan to assist state-owned power utility Perusahaan Listrik Negara (PLN) in improving the stÂaÂbility and reliability of supply and promoting the use of sustainable energy in Java. The loan will be extended under ADB’s Sustainable and Reliable Energy AcÂcÂÂess Program. The loan will be used to finance PLN’s transmission line improÂvement, power grid automation, and hazardous waste storage projects. It will also finance the digitalisation and autoÂmation of business operations and the construction of electric vehicle charging stations in Indonesia.