The upcoming SPV would be responsible for liaising with foreign embassies and industry bodies and facilitate visits by sectoral experts to represent Karnataka. It would also host small investor meets, apart from the large scale global investment meetings, and enable participation in foreign trade shows in a targeted and structured manner.
The startup’s new round led by Menlo Ventures surprised some industry insiders for its form of a special purpose vehicle and its function to help price bets by giants Amazon and Google.
"Enabling part of 7.7 GW of green power flow, the Neemrana II Kotputli Transmission project is another vital cog in the machine that will accelerate the nation s transition to a sustainable future," Sterlite Power Managing Director Pratik Agarwal said in the statement.
The project was awarded to Sterlite Power through the Tariff Based Competitive Bidding (TBCB) process in November 2023. Through the Neemrana II Kotputli Transmission Limited SPV, the company will build this Green Energy - project on a BOOT (build, own, operate, transfer) basis, for 35 years. This is Sterlite Powers twentieth power transmission project in India under the TBCB process.
Generally, if a special purpose vehicle (SPV) operating an infrastructure project seeks a loan, the bank will insist on promoters pledging shares in the SPV as security. If an AIF is the promoter or controlling shareholder of an SPV operating an infrastructure project, this would be difficult unless the fund can pledge the shares.