Sembcorp acquires stake in Indian power plant

Sembcorp Industries, the energy, water and marine group, has increased its stake in Thermal Powertech Corporation India Ltd.

Thermal Powerthech Corporation India Ltd. is the owner of a coal-fired plant in Andhra Pradesh, India, which has an estimated capacity of 1,320 MW.

The transaction has supposed a raise in Sembcop interests in the project from 67.4% to 89.9%. The total investment has reached INR3.58 billion (US$54 million) by subscribing for 358 million TPCIL shares at INR10 each.

The investment to develop the power plant project is wholly funded through a combination of internal resources and borrowings.

The remaining 13.1 percent of TPCIL is owned by Gayatri Energy ventures, a wholly-owned subsidiary of Indian conglomerate Gayatri Projects, which has an option to buy TPCIL shares from Sembcorp to increase its stake to a maximum of 30 per cent.