SINGAPORE (April 10): Sembcorp Green Infra, the India-based renewable energy business of Sembcorp Industries, has won a bid for a new wind power project with close to 250 megawatts in capacity from Solar Energy Corp of India, an entity under India’s Ministry of New and Renewable Energy.
It will be located in Tamil Nadu and connected to India’s Central Transmission Utility.
In a Monday release, the group says the total project cost is estimated to be at around INR 19 billion (S$405 million), which is to be funded through a mixture of internal funds and debt.
The project is expected to be developed in phases and fully commissioned in the second half of the Indian financial year ending March 31, 2019.
Upon completion, its entire output will be sold to Power Trading Corporation under a 25-year long-term power purchase agreement.
The award of this project is not expected to have a material impact on the group’s earnings per share (EPS) and net asset value (NAV) per share of Sembcorp Industries for FY17.
“Sembcorp is pleased to have secured this new project, through which we can further support India’s growth with sustainable wind power. We will be locating the project in Tamil Nadu, a high-wind state, and plan to work closely with suppliers and contractors to deliver the project successfully,” comments Sunil Gupta, managing director and CEO of Sembcorp Green Infra.
Shares of Sembcorp closed flat at S$3.15 last Friday.