TT&A and Resolut Facilitated Historic $2 Billion Genus-GIC Smart Meter Venture

TT&A and Resolut Facilitated Historic $2 Billion Genus-GIC Smart Meter Venture

Indian law firms Talwar Thakore & Associates (TT&A) and Resolut Partners played significant roles in facilitating the establishment of a massive $2 billion joint venture platform for Genus Power & Infrastructures and Gem View Investment. This landmark transaction stands as the largest-ever deal in India's energy smart meter market.

Genus Power, renowned as the largest smart meter manufacturer in India, joined forces with Gem View Investment, an affiliate of Singapore's esteemed sovereign wealth fund GIC, to establish a groundbreaking joint venture platform. Spearheading this momentous transaction, Partners Gautam Saha and Punita Gupta led the TT&A transaction team, complemented by the contributions of managing associate Akshita Alok. On the other side, Resolut Partners provided counsel to Gem View and GIC.

Punita Gupta, a Partner at TT&A, provided valuable insights into the collaboration between Genus and GIC to establish a platform focused on bidding and undertaking advanced metering infrastructure service provider and allied services. This partnership ensures that Genus will exclusively supply smart meters and associated services to the platform.

Gupta emphasised the utmost importance of structuring the platform in compliance with regulatory requirements, given its exclusive nature and significant role in the energy smart meter market in India. She said that the team took careful consideration of regulatory aspects to ensure a seamless and compliant venture.

According to Resolut, smart meters present distinct advantages by generating revenue early in the construction phase through secure payments, thereby reducing payment risks for distribution companies.

The law firm emphasised the sector's crucial role in India's energy initiatives, particularly in integrating smart grids, time-of-day metering, and efficient transmission.

Chiswick Investment, an affiliate of GIC, has announced its intention to invest up to $63.2 million through preferential warrants, which could potentially represent 15 per cent of Genus Power's fully diluted share capital.

Gem View Investment will hold a significant 74 per cent stake, while Genus Power will hold a 26 per cent stake in the joint venture platform being established.

India is gearing up to implement the national smart metering project as part of the Revamped Distribution Sector Scheme. The ambitious plan aims to install a staggering 250 million smart meters by the year 2025. The estimated cost for this massive undertaking is projected to be around $30 billion. This initiative reflects India's commitment to modernize and enhance its energy distribution sector by adopting smart technology, enabling better energy management, and improving efficiency across the country.

Under the scheme, power distribution companies in India are offered result-linked financial assistance. This assistance is contingent on these companies meeting pre-qualifying criteria and achieving minimum benchmarks. By linking financial support to performance outcomes, the scheme aims to incentivise and encourage power distribution companies to improve their operations and enhance the supply infrastructure.