Sembcorp Industries raises stake in Indian power plant to 86.9%

SEMBCORP Industries has raised its stake in a newly-opened power plant in India.

The group said on Tuesday that it has increased its interest in Thermal Powertech Corporation India Ltd (TPCIL) - which owns a 1,320 megawatt coal-fired power plant in Andhra Pradesh - from 67.4 per cent to 86.9 per cent by subscribing for 358 million TPCIL shares at 10 rupees each. The total investment, amounting to 3.58 billion rupees (S$73 million), is funded through a combination of internal resources and borrowings, the group added.

Gayatri Energy ventures, a wholly-owned subsidiary of Indian conglomerate Gayatri Projects, owns the remaining 13.1 per cent of TPCIL. It has an option to buy TPCIL shares from Sembcorp to increase its stake to a maximum of 30 per cent.