BackSembCorp to increase stake in NCC Infrastructure’s power plant
Sembcorp expects nod to hike stake in the 1,320 MW power plant in Andhra Pradesh within a couple of months
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Singapore: Singapore’s Sembcorp Industries Ltd expects a formal approval to increase its 45% stake in the 1,320 megawatt (MW) power plant in Andhra Pradesh within a “couple of months". “We are waiting for approval and we have already made an application (to the relevant authorities)," Tan Cheng Guan, executive vice president and head of group business development & commercial at Sembcorp Industries told PTI.
In February, Sembcorp took 45% strategic stake in the 1,320-MW coal-fired power plant, located in Krishnapatnam in Andhra Pradesh’s Nellore District. NCC Infrastructure Holdings Ltd, jointly with Gayatri Energy Ventures Pvt Ltd, is building the plant which would start operation by end of next year.
“I spoke to the government officials and they think that the approval should come over the next couple of months," said Tan on the sidelines of a Public Forum on India held by the Institute of South Asia Studies, National University of Singapore and the Confederation of Indian Industry.
“We are very positive on the power sector in India, especially with the new government encouraging more foreign investment and private participation in the power sector." “We think it is going to be positive," said Tan. He did not state, however, as to how much the stake is to be increased to. Meanwhile, Sembcorp’s 60% owned first power plant, also of 1,320-MW at Krishnapatnam, is expected to commence operation from end of this year. Thermal Powertech Corporation India, a joint venture between Sembcorp and India’s Gayatri Energy Venture, is building the plant.
Tan said both the plants have secured local fuel from Coal India Ltd. Meanwhile, Sembmarine Kakinada Ltd, a joint venture of Sembcorp’s Sembawang Shipyard and Kakinada Seaports Ltd, has started operation on the East Coast of Andhra Pradesh, according to Tan.
Tan, who has been studying investment in India since 2010, made the comments underlining the growing number of Singapore- based investors’ plans for India.
Chairing the forum on Tuesday, Singapore’s ambassador-at-Large Tommy Koh said Singapore would invest more in India as business climate improves. Singapore’s emeritus senior minister Goh Chok Tong is scheduled to visit India next month while India’s external affairs minister Sushma Swaraj is due in Singapore later this week.
Speakers at the forum, ‘India under Prime Minister Narendra Modi’, highlighted the return of strong Indian economic growth phase and the prospects of ever increasing opportunities for foreign investors, citing pro-business policies of the new prime minister. PTI
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