GR Infraprojects, a prominent infrastructure company, has enlisted the services of Standard Chartered Bank to raise approximately Rs 1,670 crore (around $200 million) in equity capital, according to sources familiar with the situation. The funds generated from this initiative are intended for the development of greenfield power transmission projects.
In recent years, GR Infraprojects has shifted its focus from primarily road and highway construction to the burgeoning power transmission sector, marking a significant diversification in its operations. India’s ambitious goal of achieving a renewable energy capacity of 500 GW by the year 2030 necessitates the establishment of a robust and future-ready transmission system to integrate large-scale renewable energy into the national grid.
An industry insider noted that the funds raised by GR Infraprojects will play a crucial role in facilitating the company’s expansion within this vital segment of the energy sector. Currently, GR Infraprojects boasts a market capitalization of Rs 16,147 crore. Over the past year, the company’s stock has appreciated by 33%, surpassing the benchmark BSE Sensex’s growth of 29%.
However, neither GR Infraprojects nor Standard Chartered Bank responded to inquiries sent via email regarding this fundraising initiative. In line with its strategic expansion, GR Infraprojects made a notable acquisition earlier this month by purchasing Tumkur-II REZ Power Transmission Ltd, a special purpose vehicle operated by REC Power Development and Consultancy, for Rs 6.7 crore.
This project involves the construction of a 400/220 kV pooling station with a capacity of 4X500 MVA, located near Tumkur in Karnataka. Additionally, the initiative includes a 27.2 km 400 kV transmission line and other associated infrastructure, with an estimated investment of around Rs 793 crore and a projected completion period of 24 months.
This project is part of a broader initiative aimed at facilitating the transmission of 17 GW of renewable energy generated in Karnataka. According to the Central Electricity Authority, to successfully integrate additional wind and solar capacity by 2030, an estimated investment of Rs 244,200 crore will be required, resulting in the need for 50,890 circuit kilometers (ckm) of wind capacity and 4,33,575 MVA of solar capacity.
The greenfield power transmission sector has seen early investments such as the $1 billion partnership between Sterlite Power and AMP Capital, which is now under the ownership of Digital Bridge. Following the success of this partnership, GIC Singapore committed $500 million to Sterlite Power last year. Power industry experts emphasize that the challenge of transmission has emerged as the most significant barrier to the widespread adoption of renewable energy capacity.
This bottleneck could hinder the planned renewable energy implementation target of 50 GW per year, jeopardizing the objective of achieving a total of 500 GW by 2030. As it stands, there are considerable limitations regarding interconnection access that are expected to persist until at least 2029.
GR Infraprojects is a leading Indian infrastructure company specializing in road, highway, and power transmission projects. With a strong focus on sustainability, the company has diversified into the power sector, aiming to support India’s renewable energy goals. Known for its commitment to quality and timely execution, GR Infraprojects plays a vital role in enhancing national infrastructure.
