GR Infra projects has partnered with Standard Chartered Bank to raise INR 1,670 crore (approximately USD 200 million) for greenfield power transmission projects. Traditionally focused on roads, the company is diversifying as India targets 500 GW of renewable energy by 2090. With a market cap of INR 16,147 crore, GR Infra projects have seen its stock rise by 33% in the past year. Recent acquisitions include Tumkur-II REZ Power Transmission Ltd., aimed at enhancing Karnataka's renewable energy capacity.
Infrastructure company GR Infra projects has engaged Standard Chartered Bank to raise INR1,670 crore (approximately USD 200 million) in equity capital, according to sources familiar with the matter. The funds will be allocated for developing greenfield power transmission projects. Traditionally focused on road and highway construction, GR Infra projects have diversified into the power transmission sector in recent years. An industry executive noted that as India aims for 500 GW of renewable energy capacity by 2090, a robust transmission system will be essential for integrating large-scale renewable energy into the grid. This fundraising initiative will support the company's expansion in this area.
With a market capitalization of INR16,147 crore, the company's stock has risen 33% in the past year, outperforming the benchmark BSE Sensex, which has increased by 29%. Neither GR Infra projects nor Standard Chartered Bank responded to email inquiries.
As part of its growth strategy, GR Infra projects recently acquired Tumkur-II REZ Power Transmission Ltd., a special purpose vehicle under REC Power Development and Consultancy, for INR6.7 crore. This project involves constructing a 400/220kV, 4X500 MVA pooling station near Tumkur in Karnataka, along with a 27.2 km 400 kV transmission line and associated infrastructure, at an investment of approximately INR793 crore and a completion timeframe of 24 months. The initiative aims to transmit 17 GW of renewable energy from Karnataka.
According to the Central Electricity Authority, integrating additional wind and solar capacity by 2030 will require investments of around INR 244,200 crore for an estimated 50,890 ckm and 4,33,575 MVA, underscoring the need for further investments in the sector. Notably, one of the earliest investments in the greenfield power transmission sector was the USD1 billion partnership between Sterlite Power and AMP Capital (now owned by Digital Bridge). Following the success of this collaboration, GIC Singapore committed USD 500 million to Sterlite Power last year.
In conclusion, as GR Infra projects continue to expand into power transmission, this funding initiative aligns with India's renewable energy goals. The company's strategic investments are poised to enhance the nation's energy infrastructure, ensuring a sustainable and robust grid for future demands.
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