Sembcorp has signed a conditional agreement to acquire 45% of NCC Power Projects (NCCPP), which is currently building a 1,320 MW coal-fired supercritical power plant along the coast of Nellore in Andhra Pradesh (India). This project will double Sembcorp’s power generation capacity in India, where the company is building another 1,320 MW supercritical power plant through Thermal Powertech Corporation India (TPCIL), expected to be commissioned before the end of 2014. Currently, construction of the NCCPP project is about 30% completed and it is expected to come onstream in early 2016. Upon completion of the transaction, Sembcorp will hold 45% of NCCPP, while the remaining 55% will be held by NCC Infrastructure Holdings (NCCIHL), a subsidiary of Indian conglomerate, NCC Limited (NCCL) and Gayatri Energy Ventures (GEVPL).
The investment strengthens Sembcorp’s position in India’s power sector, which is expected to grow substantially over the next decade. The Central Electricity Authority of India projects that power demand will continue to increase steadily and it is expected that baseload deficit will remain between 8% to 10% until 2022.