Isolux enters Indian transmission market with €815m deal

The Spanish developer has been awarded a 37.5-year concession for the construction and operation of 1,600km of high voltage transmission lines in the Indian state of Uttar Pradesh. Isolux is already present in India, where it manages 710km of motorways.

Isolux Infrastructure, the concessions arm of Spanish developer Isolux Corsan, has been awarded the concession to build, own, operate and transfer 1,600 kilometres of high voltage energy transmission lines in India – one of the world’s biggest high voltage concessions, the company said.

The contract – Isolux’s debut investment in the Indian high voltage transmission market – is worth €815 million and will have a concession period of 37.5 years. In addition to the construction and operation of 1,600km of high voltage transmission lines, Isolux Infrastructure will also have to build five transformer substations.

The lines will be located in the Indian state of Uttar Pradesh – India’s most populous state with over 200 million inhabitants – and will allow for the transport of more than 4,600 megawatts of electricity throughout the state. Isolux is no stranger to the high voltage transmission market, operating transmission lines in Brazil and the USA spanning roughly 3,637 kilometres.

The company is also no stranger to the Indian market, where it already manages 710 kilometres of motorways, worth in excess of €2 billion, spread over four concessions. In late May, Isolux signed a deal with Morgan Stanley Infrastructure Partners, the $4 billion infrastructure fund managed by investment bank Morgan Stanley, to jointly invest $400 million in the country’s roads network.

Isolux Infrastructure is the Spanish developer’s concessions vehicle, formed recently to consolidate all its worldwide concessions into one business. The new vehicle will have a total capital expenditure of €7.5 billion for all the projects in which it is currently involved.

Over the past five years, Isolux’s concessions activities have delivered annual compound growth of 70 percent, becoming “a mainstay of Isolux Corsan’s global performance,” the company had said in a previous statement.