Lanco lines up $100 mn for power biz expansion

Lanco lines up $100 mn for power biz expansion

Hyderabad: The flagship of Hyderabad-based Lanco Group, Lanco Infratech Ltd, plans to invest Rs4,300 crore in expanding its power business by adding1,200MW capacity, according to Lanco Infratech chief financial officer J. Suresh Kumar.

Lanco Infratech currently operates two gas-based power projects—the 368MW Kondapalli project and the 120MW Aban project—and a power trading firm, Lanco Electric Utility.

The projects under implementation include two coal-based projects of 300MW each at Amarkantak in Chhattisgarh, a 1,015MW imported coal-based Nagarjuna Power project in Karnataka and a 500MW hydropower project in Sikkim apart from a 1,000MW coal-based project in Anpara C block in Uttar Pradesh. The company is also implementing four hydropower projects with a cumulative capacity of 160MW in Himachal Pradesh and Uttarakhand. Earlier this year, Lanco lost out on the Sasan ultra mega power project when some of its partners withdrew and eventually Reliance Power Ltd was awarded the contract.

The company has secured a $100 million (Rs394 crore) funding from the International Finance Corp. to part-finance the planned expansion.

The power business contributes 43% of its revenues while construction accounts for 57%.

“We plan to enhance capacities at the Anpara C project in Uttar Pradesh, Kondapalli in Andhra Pradesh, and Amarkantak in Chhattisgarh. All these projects would be funded through a mix of predominantly institutional debt supported marginally by internal accruals," said Kumar.