Mumbai: Power transmission company Sterlite Power has agreed to sell its Arcoverde Project, a transmission project in Brazil, to V2i Transmissão de Energia S.A for $35 million. The Arcoverde project was built to increase the flow of renewable energy to the state of Pernambuco in Brazil.
Sterlite Power won the project n April 2017 and commissioned in May this year, 28 months ahead of the deadline set by ANEEL (Brazilian Electricity Regulatory Agency), Sterlite Power said in a statement. For this transaction, V2i Transmissao de Energia S.A., funded by Vinci Energia FIP – IE, will pay Sterlite Power $35.5 million. The conclusion and effectiveness of that transaction is subject to compliance with certain preceding conditions, such as the approval of ANEEL, among others.
In the press statement, Pratik Agarwal, CEO, Sterlite Power, said, “We are proud to have delivered our first successful project to support the SIN - Brazilian National Grid. Through this transaction we monetize our first asset and thereby attract equity capital to reinvest in our portfolio of greenfield projects".
The construction of the Arcoverde Project increased the flow of renewable energy to Pernambuco region with the construction of 129 km of power transmission lines, the installation of a new substation (Arcoverde II) and the expansion of two other substations (Garanhuns II and Caetés II) existing in the region.
In August, Mint had reported that Sterlite Power Transmission was scouting for an equity investor to raise up to ₹3,000 crore to invest in new projects. The company is run by Pratik Agarwal, nephew of Vedanta Group founder Anil Agarwal. Sterlite Power has successfully listed its operating assets under IndiGrid, a publicly traded power infrastructure investment trust (InvIT).