Sembcorp Industries has agreed to sell two supercritical coal-fired power plants in India with a combined capacity of 2.64GW to Oman-based Tanweer Infrastructure for INR117bn ($1.46bn).

In this connection, Sembcorp Industries’ fully-owned subsidiary Sembcorp Utilities has signed a share purchase agreement with Tanweer Infrastructure to sell Sembcorp Energy India (SEIL), which is the holding company for the two power plants.

Tanweer Infrastructure will become the lone shareholder of SEIL on completion of the deal. The former is indirectly owned by a consortium led by Oman Investment Corporation in partnership with the Omani Ministry of Defence Pension Fund and Dar Investment SPC.

OIC has been a long-term partner of the Singapore-based Sembcorp Industries. The duo had co-developed and operated the $1bn Salalah Independent Power and Water Plant in Oman since 2009.

OIC CEO Kalat Al Bulooshi, commenting on behalf of Tanweer Infrastructure, said: “We are glad to acquire this world-class asset, serving essential energy to the community.

“We are committed to deliver power to our customers on a continuous and efficient basis and to work with our team of committed employees at the plant, our stakeholders such as the power distribution customers and the local community, to achieve their objectives.

“Availability of power to households and industries is of vital importance in today’s world of energy uncertainties.”

The two coal-fired power plants involved in the deal are located in the Nellore district in the southern Indian state of Andhra Pradesh. Each of the power plants has a capacity of 1.32GW and consists of two power generating units of 660MW each.

Put together, the two thermal power plants serve nearly 2.64 million homes.

The deal will help Sembcorp Industries expedite the transformation of its portfolio from brown to green. Post-transaction, 51% of the energy capacity of the Singaporean group will be renewable energy, which as of 30 June 2022 was 43%.

After the sale, Sembcorp Industries will have a portfolio of 14GW, of which 7.1GW is renewable energy coming from solar, wind and energy storage assets globally.

Sembcorp Industries group president and CEO Wong Kim Yin said: “The sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green, while protecting the interests of all stakeholders.

“OIC is a trusted and reliable long-term partner, and we are confident SEIL will continue to provide reliable services to its power distribution customers, as well as maintain stability of relationships with suppliers, communities and employees.”