Infrastructure company Sterlite Power Ltd and global investment manager AMP Capital today announced they have joined hands to set up four power transmission projects in India with a total capital outlay of $1 billion.

Under the equal partnership, the two companies will invest an initial amount of around $150 million each and have put in place debt financing too. The power transmission projects will have a circuit length of 1,800 kilometres of transmission lines across India.

"The partners may in the future contribute further capital for new inter-state transmission projects which are expected to be tendered by the government. Therefore, the partnership has the potential to reach an overall investment size of USD 500 million," the companies said in a statement.

The projects will provide the infrastructure required for evacuating power from multiple renewable energy projects.

"India is a key target market for AMP Capital and we have dedicated time and resource to finding a compelling investment opportunity suited to our clients," Sharat Goyal, Head of India, Infrastructure Equity at AMP Capital.

He added the investment will create a pool of valuable transmission assets, with long-term contractual arrangements and a robust payment security framework, which are extremely attractive to yield-seeking investors.

AMP Capital has $21 billion infrastructure equity and debt assets under management. The agreement marks the first investment in India for AMP Capital’s global infrastructure equity strategy.