Kochhar advises on Sterlite Power financing

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CLP Sterlite Power

Kochhar & Co advised Sterlite Power when it obtained a ₹20.7billion (US$281 million) financing from Power Corporation of India for its power transmission special purpose vehicle (SPV), Vapi II North Lakhimpur Transmission.

The deal, which comprised financing and security documentation, was signed incrementally and announced on 20 October. Kochhar & Co’s team comprised senior partner Pradeep Ratnam and partner Parul Verma.

In a comment to India Business Law Journal, the firm said: “The financing covenants involved several discussions on the timing of various regulatory approvals and their implications for the financing … the financing documents involved strongly negotiated provisions concerning the liability of the promoter and sponsor.”

Sterlite Power, a power transmission infrastructure company, acquired the SPV on 26 June from PFC Consulting, a subsidiary of Power Finance Corporation. Through the SPV, the company will execute an interstate transmission system project in the western and northeastern regions of India. It will also set up lines to decongest the Navi Mumbai transmission corridor. Sterlite Power has projects in India and Brazil.