Sterlite Grid seeks FIPB nod to invest in power transmission projects

Monday, Jan 09, 2012

Sterlite Grid Ltd, a wholly owned subsidiary of Sterlite Technologies, has sought FIPB nod for investing into other Indian companies which are into power transmission and generation projects.

Sterlite Grid wants to be an Investing Company to undertake downstream investments according to the proposal submitted by the company with the FIPB.

While Sterlite Technologies is into manufacturing optic fibre cables and transmission equipment for telecom and power sector, Sterlite Grid is executing multi-million dollar power transmission system projects, pan-India via its fully owned subsidiary companies - EastNorth Interconnection, BhopalDhule Transmission and Jabalpur Transmission.

Sterlite has been awarded three projects for building power transmission systems (lines and substations) in India, on a Build Own Operate Maintain basis. For these projects, Sterlite would undertake the designing, financing and construction and maintenance of the transmission systems for concession periods ranging from 25 to 35 years.

Company officials said that the move to approach the FIPB is aimed at making Strelite Grid the holding company for similar special purpose vehicles formed as and when the company gets projects from the Government in the future.

The officials said that FIPB approval was being taken because the majority shareholder of the company is a non-resident Indian.

Source: Business Line