Sembcorp buys into Indian power project for $175m

SEMBCORP Industries has agreed to acquire 45 per cent of India's NCC Power Projects (NCCPP) for 8.48 billion rupees (S$175 million), and will ink further agreements to take up another 20 per cent to make up a majority stake.

Potential "substantial synergies" drove the investment, Sembcorp said yesterday. NCCPP is currently building a 1,320-megawatt coal-fired power plant along the coast of Nellore in Andhra Pradesh, adjacent to Sembcorp's first power plant investment in India, Thermal Powertech Corporation India (TPCIL).

The proximity of the two plants will enable operational synergies, such as the use of common coal importation and logistics infrastructure. Both plants will also be run by the same Sembcorp management team in Nellore.