The role that reliable supply of power plays in the development and progress of a country's commerce cannot be overemphasized. Power deficit resulting into shortage and outages has huge costs apart from the lack of amenities for people at large; these areas face slower economic development as well as business investment as a result.
As one of the leading global developers of power transmission facilities, Sterlite Power bids, designs, constructs, owns and operates power transmission assets across multiple geographies. We operate in India and Brazil with 22 projects spanning ~12,500 ckm of transmission lines. Since April 2019, seven transmission projects have been bid out in India and we have been declared as the lowest bidder for three projects - Transmission System for Lakadia-Vadodra, Transmission System for Udupi-Kasargode, and WRSS-XIX and NERSS-IX Transmission Project.
We are continually investing in and scaling up our core capabilities, which together comprise our ‘Wheel of Excellence’.
WHEEL OF EXCELLENCE
Aviation
We strongly believe that innovation and sustainability go hand in hand, and when implemented strategically can enhance competitive advantage for businesses. From using heavy and medium lift helicopters to developing in-house capability for UAV technology and LIDAR surveillance activities, we have consistently made innovative use of aviation technology to deliver our best. This has not only led us to conquer challenging terrains but has also enabled us to ensure precision in construction. One effective use-case has been Project Skyhawk in NRSS 29, wherein we deployed helicranes to carry out tough tasks in the high altitudes of the Pir Panjal range of Jammu & Kashmir – a first in Asia.
System Planning and Forecasting
With each successful project commissioning, we are enriching our strong understanding of networks and transmission systems. This serves to further enrich our robust experience in implementing large-scale projects and our understanding of diverse energy infrastructure setups. Our proactive approach and technical expertise help us to put the pedal to the metal with respect to our aim to expand operations globally.
GIS Capabilities
We are at the industry vanguard in using GIS-based (Geographic Information Systems) technologies. From planning to execution and visualisation, GIS is used to guide us in every step. We are focusing on building a GIS platform towards reinforcing our value chain through its remote sensing and earth observation applications.
Policy and Permitting
We are working towards streamlining the process of permitting timelines in accordance with those of the project. To that end, we have a team of experienced permitting professionals, who expedite approvals in line with industry benchmarks. We also have in-house Standard Operating Procedures (SOPs) for permitting in place to ensure transparency and governance.
Project Management
In a first-of-a-kind endeavour in the transmission segment, we have come up with SPEX - Sterlite Planning and Execution Excellence. It is a fully automated and integrated planning and execution solution. The system enables enterprise-level planning, monitoring and execution; while involving all stakeholders at one-level. This has helped us to digitise all key stakeholder processes, including those of EPC partners, planning teams, design-engineering teams, right-of-way teams and planning-budget teams.
Diverse Talent
With employees from ~45 sectors spread across 70+ countries, we benefit from the diverse perspectives of our workforce.
Operating Model
Bid
- Rich track record of winning lucrative inter-state transmission service agreements; robust pipeline in place
- 12 projects in India, through tariff-based competitive bidding (TBCB)
- Strong regulatory regime in India enables fully contracted long-term cash flows, low counter-party risk and long concession periods.
Award
- Government tenders
- Credit-worthy counterparty ensuring bankability
- Annuity period of 25-35 years
Develop
- Deep innovation and execution skills that help complete projects within stipulated costs; often commissioning ahead of schedule
- Adherence to the highest standards of safety and quality
- Collaboration with contractors, who are pioneers in their respective fields
Build
- Sub-contract to EPC partner
- Back-to-back guarantees
Manage and Refinance
- Strong operations and maintenance team that manages the assets post commissioning
- Pursuit of refinance opportunities
- IndiGrid – India’s first power sector infrastructure Investment Trust (InvIT) – has proved a successful way of raising capital by transferring mature, fully operational assets to the Trust and redeploying the capital for developing new assets
Asset flip
- Flip assets to IndiGrid
- Recycled equity for new projects
Portfolio at a Glance
22 Power Transmission Projects won under Public-Private-Partnerships (PPP); 12 in India under TBCB and 10 in Brazil
~22,719 MVA of Transformation Capacity
~12,500 ckm of power transmission lines commissioned or under construction
9 Operational Assetswon under PPP
56 Substations
31.5% Market Share, by tariff of inter-state projects awarded under competitive bidding in India
`36,305 Cr of Capital Expenditure(US$ 5.18 Bn planned and incurred)
62 EHV Lines
99.84% Availability achieved across our commissioned assets in 2017-18
INDIA
Our assets are located in strategically important areas from the perspective of transmission connectivity, transferring power from generating centres to load centres to meet inter-regional power deficits. We now have a total portfolio of 12 transmission projects in India, spanning 7,991 ckm, through a total capex of `20,789 Cr (US$ 2.96 Bn).
Footprint in India
4,500
(KMS) ROUTE LENGTH
7,991
(CKM) LENGTH
`20,789 Cr
(US$ 2.96 Bn)
PROJECT CAPEX
| PROJECT | OVERVIEW | SCHEDULED COD | LENGTH |
|---|---|---|---|
| Jabalpur Transmission Company Limited (JTCL) | 1 x 765 kV D/C lines 1 x 765 kV S/C lines |
Commissioned | 994 ckm |
| Bhopal Dhule Transmission Company Limited (BDTCL) | 4 x 765 kV S/C lines 2 x 400 kV D/C lines 4 x 1,500 MVA, 765/400 kV substations |
Commissioned | 945 ckm |
| Rapp Transmission Company Limited (RTCL) | 1 x 400/220 kV D/C line | Commissioned | 402 ckm |
| Maheshwaram Transmission Company Limited (MTCL) | 2 x 400 kV D/C lines | Partially operational | 472 ckm |
| Purulia & Kharagpur Transmission Company Limited (PKTCL) | 2 x 400 kV D/C lines | Commissioned | 545 ckm |
| NRSS XXIX Transmission Limited (NRSS 29) | 3 x 400 kV D/C lines 1 x 400/220 kV D/C GIS |
Commissioned | 830 ckm |
| East-North Interconnection Company Limited (ENICL) | 2 x 400 kV D/C lines | Commissioned | 909 ckm |
| Gurgaon-Palwal Transmission Limited (GPTL) | 5 x 400 kV D/C lines 3 x 400/220 kV substations |
September 2019 | 255 ckm |
| Khargone Transmission Limited (KTL) | 2 x 765 kV D/C lines 1 x 400 kV D/C line 1 x 765/400 kV substation |
July 2019 | 619 ckm |
| NER II Transmission Limited (NER-II) | 2 x 765 kV D/C lines 1 x 400 kV D/C line 1 x 765/400 kV substation |
November 2020 | 824 ckm |
| Odisha Generation Phase-II Transmission Limited (OGPTL) | 1 x 765 kV D/C line 1 x 400 kV D/C line |
Commissioned | 715 ckm |
| Goa-Tamnar Transmission Project Limited (GTTPL) | 1 x 765 kV D/C line 2 x 400 kV D/C line 1 x 220 kV D/C line |
November 2021 | 481 ckm |
BRAZIL
We commissioned our first project in Brazil in the reporting year, while also emerging as the winner in the auction of the prestigious Pampa project. In a short span of time, we have developed a portfolio of total 10 transmission projects in the fast-growing South American nation, spanning 4,416 ckm, through a total capex of `15,516 Cr (US$ 2.22 Bn)
Footprint in Brazil
2,967
(KMS) ROUTE LENGTH
4,416
(CKM) LENGTH
`15,516 Cr
(US$ 2.22 Bn)
PROJECT CAPEX
| PROJECT | OVERVIEW | SCHEDULED COD | LENGTH |
|---|---|---|---|
| Arcoverde | 2 x 230 kV transmission lines |
Commissioned | 129 ckm |
| Vineyards | 3 x 230 kV transmission lines |
August 2022 | 115 ckm |
| Novo Estado | 3 x 500 kV transmission lines |
March 2023 | 1,831 ckm |
| Dunas | 2 x 500 kV transmission lines 3 x 230 kV transmission lines |
September 2023 | 541 ckm |
| Borborema | 1 x 500 kV transmission line |
March 2023 | 129 ckm |
| Sao Francisco | 2 x 500 kV transmission lines 1 x 230 kV transmission line |
September 2023 | 521 ckm |
| Goyaz | 1 x 230 kV transmission line | March 2023 | 152 ckm |
| Pampa | 2 x 525 kV transmission lines 1 x 230 kV transmission line |
March 2023 | 326 ckm |
| Marituba | 1 x 500 kV transmission line | March 2023 | 374 ckm |
| Solaris | 1 x 345 kV transmission line 1 x 230 kV transmission line |
January 2024 | 298 ckm |
*(As per ANEEL timelines)
Achievements
7 New Transmission Projects won in Brazil
`3,000 Cr in(US$ 428 Mn) bonds raised through PSV
Novo Estado project got implemented and received environmental licenses within a year
Rui Chammasjoined as the CEO of our Brazil business
Arcoverde project in Brazil commissioned 28 months ahead of schedule
Special Purpose Vehicle BDTCL received the 1st International ROSPA GOLD Category Award in Safety
NRSS 29 project commissioned two months ahead of schedule
Pampa project won in Brazil
Industry leading benchmarks for Quality, Health, Safety and Environment Management in the sector
Diverse Product Portfolio with Significant
Market Position across Categories
Overhead Products
Business
Power utilities are facing increasing pressure due to rapid urbanization, demand growth and ageing infrastructure. They have an urgent need for augmentation and upgrades to meet their needs. We help power utilities tackle their network congestion challenges by providing solutions that upgrade and uprate corridor intensity. Our strategic solutions ensure improved performance in the short and long-term through system design, engineering, procurement and construction practices
Underground Products and
Turnkey Business
Conductors
- Complete range of power conductors from ACSR to High Performance Conductors (HPC) like composite core, INVAR, ACSS and GAP type
- 3 NABL-accredited manufacturing facilities with production capacity of 1,62,000 MT/year and 12,000 km/year of HPC
- Supply to 60+ countries
- First player in India with upstream integration of molten metal for manufacturing conductors
- Conductor facilities at Rakholi and Piparia scored 97% and 93% respectively in the Workplace Conditions Assessment audit conducted by Intertek in Nov 2018
Optical Ground Wire (OPGW)
- India’s only fully integrated manufacturer and solutions provider of OPGW; NABL-accredited manufacturing facility
- Capacity of 15,000 km/year
- Planning, application, design engineering and execution capabilities to meet requirements of power systems/utilities for communication, protection and commercial purposes
- First conductor and OPGW manufacturer in India to obtain a landmark assessment and certification for measurement and reporting of Greenhouse Gas Emissions, as per ISO 14064-:2006
Cables and Solutions
- State-of-the-art NABL-accredited facility for manufacturing cables
- Wide product range covering 6.6 kV to 400 kV power cables. New products like three core EHV cables, fiber integrated power cables, high ampacity low loss cables and CCD are in focus
- Range of 110+ innovative designs to meet industry requirements
- EHV turnkey projects include cable laying and substation development
- Best-in-class manufacturing facility
Master System Integration (MSI) Business
Sterlite Power has successfully transformed into a Master System Integrator delivering multifold increase in throughput, upgrades to existing infrastructure, uprate of Overhead Conductors, OPGW based communication system & reliable EHV underground network, in shortest possible time.
Business Model
Capabilities
- In-house power systems study capability and simulation tools
- In-house design capability using digital tools for substations, tower conductors, cable systems and foundations
- Live line with zero shutdown reconductoring capability
- Partnership with best-in-class players globally for project execution and integration of technology
Differentiators
- Engaging deeply with customers to address their unmet needs in power transmission
- Creating bespoke solutions to address complex challenges in energy delivery
- Scouting technologies from around the world
- Delivering ahead of schedule vis-à-vis our competitors
- Practising best safety and quality standards
- Programme management of right-of-way, environment approval and statutory approvals
3,000+ ckm
of uprate and upgrade to existing transmission line (completed or under execution)
50+
critical corridors in 12+ states
8,500+ km
OPGW-based communication projects under live line condition
The below map shows only Uprate/Upgrade Projects or New Line with HPC projects. Sterlite Power's Solution Business also undertakes OPGW-based reliable communication projects and have delivered over 8000 KM under live line condition
| UTILITY | OVERVIEW |
|---|---|
| Gujarat Energy Transmission Corporation(GETCO) | 220kV D/C Chorania - Salejada 220kV D/C Bhogat - Ranavav 400kV D/C Bhachunda - Varsana |
| Goa Electricity Department (GED) | 110kV D/C Tivim - Ponda 110kV D/C Palsarem - Kadamba LILO |
| Power Grid Corporation of India (PGCIL) | 400kV D/C Farakka - Malda |
| Himachal Pradesh State Electricity Board (HPSEBL) | 66kV D/C Kotla - Ghanvi 66kV S/C Kotla - Nogli 22kV S/C Gumma to Andhra 66kV S/C Nogli - Samoli 22kV S/C Rukti - Shaung power house |
| Kerala State Electricity Board (KSEB) | 400kV, 220kV, 110kV - MC, MCMV Madakkathara to Areekode Part - 1 MCMV (ERNAD PACKAGE A) MCMV line from Keezhisseri to Nallalam - Part2 (ERNAD PACKAGE B) 220/110kV MCMV line 110kV D/C Mallapuram - Manjeri NRHTLS PACKAGE A Kakkayam - Koduvally 110kV D/C Koduvally - Kunnamngalam 110kV D/C Kunnamngalam - Nallalam 110kV D/C Nallalam - Chevayur 110kV D/C Chevayur - Kinnalur 110kV D/C Kinnalur - Kakkayam 110kV D/C NRHTLS PACKAGE B Nallalam - Chevayur 110kV S/C to 110kV D/C Chevayur - West hill 110kV S/C to 110kV D/C West hill - Koyilandy 110kV S/C to 110kV D/C Koyilandy - Meypayur 110kV D/C Methottuthazham - Mankavu 66kV D/C to 110kV D/C Kolathanadu line package KLSP A - Kanhirode SS to Mundiyad SS (110S/C to 220 D/C) KLSP B - Mundiyad SS to Mylati (110S/C to 220/110kV MC) North Malabar Package NMLP A - Mundiyad SS to Thalasari SS (110S/C to 220/110kV MC) NMLP B - Areekode Feeder Tap point to Kunumanagalam SS) (110S/C to 220/110kV MC) |
| Jharkhand Urja Sancharan Nigam Limited (JUSNL) | 132kV S/C Hatia - Kamdara |
| Maharashtra State Electricity Transmission Company (MSETCL) | 132kV D/C Ambazari - Hingna line |
| Delhi Transco Limited (DTL) | 220KV DC Wazirabad - Geeta colony 220KV DC Sarita Vihar Pragati IP 220 KV DC Gopalpur - Mandola Line DIAL - Mehrauli Bamnauli - DIAL BTPS - Mehrauli |
| Transmission Corporation of Telangana (TS TRANSCO) | 132kV D/C Nagarjuna Sagar - Halia 132kV D/C Warangal - Jangon 132kV D/C Aleru - Bhongiri 132kV D/C Dichpally - Janakampet, 132kV D/C Medhchal - Medhchal 132kV D/C Janakampet - Renzal 132kV D/C Ramannapet - Narketpally, 132kV D/C Medhchal - Shapurnagar- |
| Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) | 132kV S/C Muradnagar - B.S.Road Line 132kV S/C Sikandara (Agra) - Badola Line 132kV S/C Varanasi Cantt 132kV S/C Sarnath - Manduadih line 132kV S/C Gajokhar - Manduadih 132kV S/C Vaishali - Sahababad 132 KV S.C. SAROJININAGAR - SGPGI 132 KVS.C. SGPGI - MARTINPURWA 220 kV D/C Greater Noida(400) - Noida Sec20 line 220 KV DC Greater Noida(400)- Noida Sec129 132KV SC Mohaan road - Sonik 132KV SC Mohaan road - TRT 132KV SC SGPGI - Gomtinagar 220 KV Sector 148 - Sector 129 Noida |
| West Bengal State Electricity Transmission Company Limited (WBSETCL) | 132kV D/C Malda - Malda 132kV D/C Gokarna - Berhampore 132kV D/C Durgapur - Ukhra New Haldia - Haldia NIZ 132kV D/C Gokarna - Kuli 132kV D/C KTPS - Tamluk - 132kV D/C Kasba - Klc - Salt Lake - AL59 132kV D/C Kasba - Sonarpur 132kV D/C AL59 NTAAIII - Salt Lake GIS 132kV S/C AL59 New Chandithala - Rishra 220kV S/C Drake |
| Bihar State Power Holding Company Limited (BSPTCL) | 132KV S/C Dehri - Banjari Transmission Line 132KV D/C Sonenagar - Dehri Transmission Line 132KV D/C Dehri - Banjari LILO Transmission Line 132KV S/C Kahalgaon - Sabour Transmission Line 132KV S/C Kahalgaon BSPTCL- Kahalgaon NTPC Transmission Line |
| Tamil Nadu Transmission Corporation (TAN TRANSCO) | 110 KV D/C Kundha PH II - Thudiyalur |
India is in the midst of an unprecedented internet revolution with data consumption growing exponentially by the day. With 5G technology around the corner and IoT devices ready to connect & interact with one another (M2M), reliable optical fiber infrastructure is the need of the hour. The omnipresent utilities network present across the breadth of the country is poised to address the above need. Fiber network riding on utilities’ existing network can provide unparalleled coverage along with robust and secured infrastructure.
The National Digital Communication Policy (NDCP) 2018 released by Government, outlines the vision of “Fiber First Initiative” to take fiber to home, enterprises and key development institutions. The policy emphasizes on leveraging existing assets of power sector to improve data connectivity. Aligned with the above vision, Convergence business looks at the potential of utilizing existing assets of utilities for Telecommunication purposes, and thereby delivering long-lasting social impact.
We leverage our transmission infrastructure and other power utilities to roll out a pan-India reliable and efficient optical ground wire (OPGW) fiber network. This network is far superior compared to the conventional underground counterpart which faces frequent damages on account of continuous road expansion, utility construction & maintenance and high terrestrial interventions.
The business also supports cities which are fast evolving to be ‘smarter’; where urban planners aim to create a citizen-friendly digital ecosystem with critical infrastructure in place. Our smart city fiber solution addresses the communication infrastructure challenges and proposes innovative public private partnership models. We offer favorable long-term partnership to design, build, finance, operate & maintain an optical fiber network, which can act as the digital backbone for all smart infrastructure in the city.
The aim of our Convergence Business is ‘to be the best-in-class communications infrastructure and solutions provider by creating the most reliable network’.
Convergence Business aims to create a Pan-India Communication
Infrastructure using OPGW Network
Network Features
Our Offerings
Dark fiber solutions:
Reliable, Efficient & Scalable
Colocation solutions:Space, 24X7 support & Multiple Power backups
Proactive fiber monitoring:Real-time notification, cost-effective
Achievements
Unique Network Assets
- Access to 6,816 km of OPGW fiber across India covering 94 districts & 393 towns including MTCIL’s OPGW fiber
- Built secured colocation facilities within power substations enabling service providers to house telecom equipment
- Intra-city fiber development through Unique PPP model with Gurugram Metropolitan Development Authority (GMDA)
- Access to ~21,000 transmission towers which can be utilized for telecommunication purposes
Customer Acquisition
- Long-term Indefeasible Rights of use (IRU) and short-term Annual rate contract (ARC) dark fiber deals with large telecom service providers, ISPs, MSOs & wholesale carrier providers in India
- Colocation rack space lease to end customers
- Presence in both urban and rural areas including tough & challenging terrains
World-class Service Uptime
- Best-in-class operational excellence and unmatched fiber uptimes leading to higher customer satisfaction
- Colocation facility with 99.9% service availability, uninterrupted power supply, remote monitoring & surveillance
India’s first infrastructure Investment Trust (InvIT) in the power sector, India Grid Trust (IndiGrid) was created in 2016 by Sterlite Power Grid Ventures, in order to acquire operating power transmission assets. IndiGrid, with AUM (assets under management) worth ` 10,667 Cr (US$ 1.52 Bn) has eight operating power transmission projects consisting of 22 revenue-generating elements, encompassing ~4,900 circuit kilometers, and transformation capacity of 7,735 MVA. The InvIT offers investors the remarkable opportunity to own infrastructure assets in the power transmission sector hitherto inaccessible in terms of direct reach and participation. At the same time, it allows infrastructure developers to monetize their operating projects and redeploy the capital for developing new assets.
SIML is the Investment Manager for IndiGrid and takes decisions concerning the assets of IndiGrid. A subsidiary of Sterlite Power, SIML bears overall responsibility towards charting out the strategic course of action of IndiGrid and deciding on the acquisition, divestment or enhancement of assets of IndiGrid in accordance with its stated investment strategy.
KKR AND GIC INVEST IN INDIGRID
The deal On May 4th, 2019, India Grid Trust (“IndiGrid” or the “InvIT”) announced the closing of a preference unit issuance worth ` 2,514 Cr (US$ 359 Mn). As part of the transaction, KKR and GIC invested ` 1084 Cr (US$ 154 Mn) and ` 980 Cr (US$140 Mn), respectively. Currently, they collectively own 42% of IndiGrid’s outstanding units. KKR has also applied to become an additional Sponsor of IndiGrid and plans to acquire an additional 15% of IndiGrid’s total units from Sterlite Power. Following the closing of the transactions, KKR and GIC will collectively own approximately 57% of IndiGrid’s outstanding units. In a separate transaction, KKR has additionally acquired 60% shareholding in Sterlite Investment Managers Limited, the investment manager owned by Sterlite Power. Sterlite Power established IndiGrid in 2016 and continues to be the Sponsor and its Project Manager.
The benefits
- This investment made by KKR in IndiGrid was used to buy equity stake in NRSS XXIX and OGPTL from Sterlite Power in Q1 FY 2019-20.
- The sale proceeds from NRSS XXIX and OGPTL will also enable Sterlite Power in focusing on its development portfolio while realising the best value for its portfolio upon completion in future. IndiGrid has also entered into a framework agreement for Sterlite Power’s three under construction assets in GPTL, KTL and NER II to be acquired upon completion (expected to be acquired over the next two years), subject to appropriate due diligence and regulatory approvals being in place.
- The deal may also set a precedent for the infrastructure sector as investors slowly warm up to InvIT, a relatively new instrument in the country that allows promoters of projects to sell their stake in completed projects to the trust, which in turn can raise long-term funds from unit holders.
- This partnership with KKR through IndiGrid has enabled Sterlite Power, a stated developer of greenfield assets, to de-risk its growth strategy by monetising its projects into IndiGrid and thus freeing up its dry powder to invest back into global development projects in countries like India, Brazil and beyond.
- With KKR’s investment into IndiGrid and acquisition of majority shareholding in the investment manager, IndiGrid will benefit from the global fund management expertise of KKR and at the same time provide visibility of capital for future growth. Similarly, IndiGrid will also benefit from the development and project management expertise of Sterlite Power as a Sponsor and project manager, by monetising its transmission assets to IndiGrid.