Sembcorp Industries announced that it has signed an agreement to acquire 45% of NCC Power Projects (NCCPP) through a wholly-owned subsidiary at a cost of Rs. 848 crores (approximately S$175 million). NCPP is currently building a 1,320-megawatt coal-fired power plant near Krishnapatnam Port along the coast of Nellore in India, quite adjacent to Thermal Powertech Corporation India (TPCIL), Sembcorp’s first power plant investment in India.
Both the plants will be run by the Sembcorp management team in Nellore allowing Sembcorp to benefit from numerous synergies like using the common infrastructure for coal imports and logistics. NCCPP’s project is expected to go on stream by early 2016. TPCIL plant is nearing completion and the project’s first 660-megawatt unit is expected to be commissioned in the second quarter of 2014. TPCIL’s second 660-megawatt unit expected to go on stream by the end of 2014.
NCCPP is jointly owned by Gayatri Energy Ventures (GEVPL) – Sembcorp’s partner in the TPCIL project – and NCC Infrastructure Holdings (NCCIHL), a subsidiary of NCC Limited. Post acquisition, Sembcorp will hold 45% of NCCPP, while the remaining 55% will be held by NCCIHL. NCCIHL is jointly owned by NCC Limited and GEVPL.