(Bloomberg) -- IndiGrid, India’s largest power sector infrastructure investment trust, has teamed up with British and Norwegian funds to put money into projects aimed at driving the South Asian country’s energy transition.
British International Investment, Norway’s Norfund and the Indian company have committed a total of $300 million to enable the development of new transmission lines and battery storage projects through the joint venture EnerGrid, said IndiGrid’s Chief Executive Officer Harsh Shah.
India needs an estimated $109 billion of investment into its grid to support its energy transition goals. In recent years, a spurt in demand and rising prices have resulted in delayed deliveries of much-needed equipment, putting further pressure on the industry.
“After commercial operations start, the projects would be fully acquired by IndiGrid at a pre-agreed enterprise value,” Shah said, adding that EnerGrid would have transmission projects worth 12 billion rupees ($142 million) to start with.
Rohit Anand, head of infrastructure equity for Asia with BII, said that EnerGrid would take on bidding, construction and execution work and once the projects are de-risked and operationally proven, IndiGrid would acquire them.
IndiGrid currently owns a portfolio of power transmission projects and battery storage systems worth $3.5 billion. The company was established by Sterlite Power Grid Ventures Ltd. and is one of the earliest among a band of infrastructure investment trusts in India.
--With assistance from Rajesh Kumar Singh.
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