IndiGrid partners with British, Norwegian investors, India’s Techno to develop transmission projects

New Delhi: IndiGrid Trust has tied up with three investors to jointly develop the KKR-backed infrastructure investment trust’s interstate transmission system projects.

UK’s development financier British International Investment (BII), the Norwegian Climate Investment Fund (managed by Norfund) and Techno Electric and Engineering Company Ltd will invest in three power transmission projects-Ishanagar Power Transmission Ltd (IPTL), Dhule Power Transmission Ltd (DPTL), and Kallam Transco Ltd (KTCO), according to a statement by IndiGrid on Thursday.

The three under-construction projects, which IndiGrid won last year, are expected to support evacuation of up to 6 GW renewable energy in Madhya-Pradesh and Maharashtra.

BII and Norfund, also a development financier, will route its investments through KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company.

Also read | Norfund, DEG in $250-mn race for stake in IndiGrid's power transmission platform

Techno will co-develop the IPTL and DPTL projects, invest minority capital and will be responsible for complete execution on a lump sum turnkey basis, where the contractor completes and delivers a project to the client at a set price.

Way forward

IndiGrid will acquire entire stake in these projects once they are operational and revenue generating.

In the last fiscal (FY24), IndiGrid operationalized its first greenfield ISTS project, Kallam Transmission Limited, and won five additional projects, across ISTS and battery energy storage system, with a projected capex outlay of ₹2,000 crore to be deployed over the next 12-24 months.

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“On the back of India’s commitment to energy transition and grid parity across renewable energy technologies including BESS, we are witnessing tremendous investment opportunities in our target areas,” said Harsh Shah, chief executive officer, and whole-time director. “This offers a compelling prospect for investors with preference for sustainability.”