Vedanta Group's power transmission arm Sterlite Power Transmission (SPTL) and Singapore's sovereign wealth fund GIC will set up a USD one billion platform focused on development of power transmission projects in India.

The partnership aims to capitalise on the opportunities in the power transmission sector in India, represented by a robust pipeline, including renewables.

GIC will invest USD 500 million for a 49 percent stake in the joint venture (JV), and Sterlite Power will deploy an amount corresponding to a 51 percent stake.

This investment aims to support the goal of increasing RE usage and upgrading the national transmission grid.

GIC is coming into a special purpose vehicle (SPV) which will own all the under-construction projects of SPTL. The JV company will initially have five projects.

And then it will scale up to more projects. The platform will invest about USD one billion of additional equity in future to increase the assets under management to over Rs 30,000 crore.

Sterlite Power would transfer four operational assets with a cumulative project cost of about Rs 7,500 crore into this JV, pursuant to closure of the deal.