Indian Economy News

Sterlite Power wins third project worth US$ 800 mn in Brazil, beats Power Grid

New Delhi: Marking its presence overseas, Sterlite Power won one of the largest power transmission projects in Brazil worth $800 million. This is the third project that the company has won in the country.

Brazil bid out 1,800-kilometres transmission project through a reverse auction tender. Among other players in the fray were global majors such as State Grid of China, Engie Elecnor and Indian state-owned Power Grid Corporation. 

Sterlite's bid had a discount of 35.72 per cent over the proposed maximum annual revenue and was one of the lowest discounts of the auction, which had an average discount of 40.46 per cent, said the company in a public statement.

It further said the project will be executed in the north of Brazil, in Pará and Tocantins, with more than 1,800 km of transmission lines. 

“The project will be part of the North-Southeast and North-Northeast interconnections. It is critical for the power evacuation from Belo Monte Hydroelectric Power Plant, the third-largest hydropower plant in the world. The transmission project will increase the reliability of the system in the northern region of Brazil and has the potential to create more than 5,500 direct jobs, according to the National Electric Energy Agency (ANEEL),” said Sterlite Power.

With this third project, Sterlite’s investment in Brazil has crossed over a $1 billion, the largest ever by an Indian company in Latin America. The company has set up a local team with a couple of advisors such as Charles Putz, partner of Rio Bravo Investimentos and former chief financial officer of Telefónica and CSN, and José Luiz Alquerez, former chief executive officer and chairman of Eletrobras.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.