Sembcorp to acquire 45% stake in NCC, Gayatri Projects plant.

Sembcorp Utilities Pte Ltd. of Singapore, a wholly owned subsidiary of Sembcorp Industries, has agreed to acquire 45 per cent stake in 1320 MW power plant being implemented by NCC Ltd. and Gayatri Projects Ltd. through their respective subsidiaries.

These subsidiaries NCC Infrastructure Holdings Ltd. (NCCIHL) and Gayatri Energy Ventures Private Ltd. (GEVPL), which are implementing this coal fired thermal project through a special purpose vehicle NCC Power Projects Ltd near Krishnapatnam in Nellore district of Andhra Pradesh, have entered into definitive agreements. Sembcorp is a leading developer, owner and operator of energy and water assets with 5,900 MW of power capacity installed and under development. Upon completion of the transaction, while Sembcorp will hold 45 per cent stake, the rest will be with NCC and GEVPL. NCC's subsidiary would enter into additional conditional agreements, which would give Sembcorp right to acquire a further stake in the company of up to 20 per cent, subject to required approvals.

A Ranga Raju, Managing Director, NCC, said: 'We are certain that the project will benefit out of this partnership with Sembcorp and we will be able to achieve commercial operations as per schedule.'

TV Sandeep Reddy, Managing Director, Gayatri Projects, said: 'Sembcorp possesses the operational and financial expertise required to execute a project of such magnitude. Its induction will provide a much needed impetus to the project as it puts to rest apprehensions surrounding its ability to start commercial operation on time. We are now focused on finishing the execution work on the project and are hopeful of achieving the commissioning of the same on time.'


HBL