Sterlite Power has achieved financial closure for its Kishtwar transmission project in Jammu & Kashmir, which is being developed by its wholly-owned subsidiary Kishtwar Transmission Ltd.
In a release, Sterlite Power said that financial closure was attained after the company successfully secured the entire debt funding of Rs.305 crore from Aseem Infrastructure Finance Ltd (AIFL).
AIFL is an NBFC–infrastructure finance company promoted by the Strategic Opportunity Fund (SOF) of National Investment and Infrastructure Fund (NIIF), with anchor investments from Government of India and Japan’s Sumitomo Mitsui Banking Corporation (SMBC).
ISTS project
Sterlite Power acquired the project SPV “Kishtwar Transmission Ltd” in December 2022 to execute the interstate transmission system project. The project involves construction of a transmission system comprising of a 400/132kV GIS substation at Kishtwar and a 400kV transmission line from Kishenpur to Dulhasti. The transmission system will aid evacuation of 1,000 mw of power from Pakaldul hydropower to the Kishtwar substation. 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 Kashmir valley.
Second project in Kashmir
Commenting on the financial milestone, Akshay Hiranandani, Executive Director- Corporate Finance, Sterlite Power said, “We are pleased to conclude this deal with Aseem Infrastructure Finance in record time. We are proud to play a role in providing reliable power and building a secure energy future for J&K. This will be our second project in the region after delivering the mega NRSS Kashmir project ahead of schedule.”
Also read: Sterlite Power Completes Rs.1,200-Crore Refinancing Of Khargone Project
Long-term debt financing
According to Virender Pankaj, CEO, Aseem Infrastructure Finance, “Aseem Infra is glad to have supported Sterlite Power by providing long-term debt financing for the Kishtwar project which would contribute immensely to the infrastructure growth story of J&K. The debt solution was structured in a manner so as to balance the unique requirements of all the stakeholders involved while delivering a swift turnaround time.”
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