Singapore based water and energy major *Sembcorp Industries Ltd *through its subsidiary *Sembcorp Utilities* has acquired 49% stake in Hyderabad based *Thermal Powertech Corporation India Ltd (TPCIL)* – a special purpose vehicle (SPV) of *Gayatri Energy Ventures Pvt Ltd (GEVL)* for 319 mn Singapore dollar (Rs.1,042 Cr).
GEVL, a wholly-owned subsidiary of infrastructure company *Gayatri Projects Ltd (GPL) *will continue to hold the remaining 51% stake in TPCIL. TPCIL is setting up a 1,320 MW (2 units of 660 MW) thermal power project at Krishnapatnam on the east coast of Andhra Pradesh at a cost of Rs.6,869 Cr. 75% (Rs.5,151 Cr) of the project cost will be funded through debt, while the remaining 25% (Rs.1,718 Cr) through equity. Out of debt portion, part will be lend by domestic institutions led by *REC, PFC, PNB*. The financial closure for the project is expected in the next one month and construction is expected to be completed by March 2014, while the revenues will flow in by FY2015. The project will be operated and maintained by a 70:30 operations and management joint venture between Sembcorp and GEVL. This project is a major strategic landmark for Sembcorp and marks the company’s entry into the fast growing Indian energy market. GEVL is also planning to add another 1,320 mw in the second phase at Krishnapatnam. *Capital Fortunes Pvt. Ltd* has acted as the sole arranger of project financing through local institutions and banks for debt and foreign investment for equity. Transaction Note Founded in 1963 by Dr T Subbarami Reddy, GPL is a Hyderabad based construction company, which was mainly involved in the construction of major irrigation projects in Andhra Pradesh. Currently, GPL specializes in road and irrigation projects and has a pan-India presence. Three new divisions - urban infrastructure, water and industrial construction were added recently to expand into other verticals of infrastructure and de-risk its business. The company has completed several projects in diverse segments like irrigation, dams, railways, highways, water treatment plants, airport runways, port projects, industrial structures and onshore projects. GPL has entered into MoU with Ion Exchange to explore opportunities in the water segment and have also tied up with DLF for urban infrastructure. GPL has been allotted 1,408 acres of land in Krishnapatnam district for the power project. It has also signed a power purchase agreement (PPA) with *Power Trading Corporation (PTC)* for selling 70% of the power generated at the rate of Rs 2.55 per unit; the balance 30% will be sold on a merchant basis. GPL has been allocated 70% of the coal linkages from *Western Coal Fields Ltd* and the remaining 30% from Indonesia. Sembcorp is a leading provider essential energy and water solutions to customers in Singapore, China, Vietnam, the United Kingdom, the UAE and Oman. It also provides marine & offshore engineering, environmental services and is a developer of integrated townships and industrial parks in the region. The company's posted a net profit of Rs.15.3 Cr for Q3 2010 versus Rs.10.6 crore in Q3 2009 and turnover of Rs.334 Cr against Rs.256 Cr in the same period. Sembcorp Industries has total assets of over S$9 billion and employs more than 6,700 employees. In November 2009, Semcorp through its wholly owned subsidiary *Sembawang Shipyard* formed a JV with *Kakinada Seaports Ltd *to establish and operate a marine and offshore facility. Semcorp’s investment is the third overseas investment in India’s power generation sector after the investments by Hong Kong-based *CLP Holdings Ltd *through *CLP Power India Pvt. Ltd*, and US-based *AES Corp*. through *AES India*. In India, CLP India's first venture was in 2002 when it acquired a ajority stake in Gujarat Paguthan Energy Corporation. n December 2009, CLP Power India has planned to invest about Rs.3,600 Cr to set up 600 MW of wind power capacity in five States - Gujarat, Maharashtra, Karnataka, Rajasthan and Tamil Nadu. This month in May in entered into an agreement with Vestas Wind Technology India Pvt Ltd, the world's largest wind turbine manufacturer, to develop 99 MW Theni Wind Farm in Tamil Nadu. CLP also plans to expand its green portfolio by adding another 300 MW in hydropower production while making a small foray in solar power with a 5 MW solar power farm and integrating it with wind power projects in Maharashtra and Gujarat. AES India, a subsidiary of the US utility giant AES Corporation,has 49% stake in Ib valley Thermal Power Station (ITPS), while Orissa government has 51% holds remaining 51%. India has a power generation capacity of 157,000 MW. The 11th Plan (2007-12) has set a target of adding 78,577 MW of capacity, requiring some Rs.10.31 trillion in investments. But government is expecting Rs4.51 trillion funding shortfall. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
