Sembcorp Industries announced that its shareholding in Thermal Powertech Corporation India (TPCIL) has increased from 49% to 65%. Total investement for the incremental 16% stake amounts to approximately Rs 400 crores, with the increase in stake, TPCIL now becomes a subsidiary of Sembcorp. The remaining 35% is owned by Gayathri Energy ventures, a wholly-owned subsidiary of Gayathri projects.
TPCIL owns and is developing a 1,320-megawatt coal-fired power plant located in Krishnapatnam in Andhra Pradesh’s Nellore District, India. This is Sembcorp’s first power project in India.
TPCIL is building the power plant which will utilise supercritical technology that allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants. The project is expected to be implemented in two phases, with the first unit of 660 megawatts expected to be completed by mid-2014, and the second unit of 660 megawatts by end-2014.
Sembcorp has two power projects with a total capacity of 2,640 megawatts in India: the TPCIL project, as well as another 1,320-megawatt coal-fired power plant that is currently under development by NCC Power Projects. With both these projects, the Group is well-positioned in India’s growing power sector.
This increase in shareholding is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2014.