CLP India eyes transmission assets

Making its entry into the space of transmission, CLP India Pvt Ltd is looking at acquisitions, according to sources, in the backdrop of low green energy tariffs that threaten profitability. The country’s power sector is going through a change with the government’s attempt to improve India’s per capita power consumption of around 1,200 kilowatt hour, which is among the lowest in the world. Transmission projects, on their part, are considered to be a safer bet, given the annuity nature of the business and risks such as land acquisition, right of way and forest clearance are restricted to the construction stage. Given the uncertainties in the renewable energy space, raising large scale utilities will look at opportunities in the transmission and distribution space. CLP is trying to enter the transmission sector of the third largest economy.