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Sterlite Power to seek external funding for a Clean Energy Future
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Last Updated: 11th December 2022 - 08:15 pm
In India and other developed nations, Sterlite Power Transmission Ltd anticipates that the infrastructure for the power sector will expand over the coming years. The company, which is a part of the Vedanta group, is seeking outside funding.
In an interview with Mint, Pratik Agarwal, managing director of Sterlite Power Transmission Ltd said that from the current fiscal year forward, India will need to spend between Rs. 13,000 and 15,000 crores annually on transmission. The company has already noticed numerous intricate plans with specifics that are being submitted to various ministry committees for approval before being released for tendering and auction. India will thus be a $ 30 billion market in the following five years. To reach the 500 GW renewable energy targets for 2030, these levels of investments would be necessary.
The company has historically held a market share of 25–28%, and it is likely to continue doing so even as the market grows. Therefore, it is anticipated that there will be over Rs. 30000–40000 crores worth of transmission project tenders this year. The country will spend anywhere between Rs. 1,50,000 crore and Rs. 2 trillion on transmission over the next five years.
The company is at present executing 6-7 projects in India and 6 projects in Brazil and is expecting huge growth in both markets. In terms of pure diversification, the company intends to focus primarily on the generation of renewable energy over the next few years. The company's primary business is the production of goods, and it has discovered that many interesting components of the global supply chain for the energy transition will be in short supply. There is a significant chance that the transformer, undersea cable, and component shortages in the wind turbine industry will occur. There will be an excess of modules for a while, but in the next two to three years, there will be a shortage. The company is therefore analyzing the entire situation and considering how to enhance its product line to meet the needs of the global energy function.
Currently, the company is looking out for external funding. To date, the company has done four deals with external capital. The transmission sector has been behind in terms of investment compared to the power generation sector globally. For India, Sterlite Power Transmission Ltd is setting a goal of 500 GW of renewable capacity by 2030 which will also require a huge and quick investment to be in pace with the infrastructural requirements.
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