Friday, 14 February 2014

Lanco Infratech To Exit Udupi Power Project

Gurgaon based Lanco Infratech is in talks with four firms including CSEC Ltd for the sale of its 1200 MW Udupi Power Project to cut down its debt burden.Recently, 70 MW Lanco Budhil Hydro Power Project along with two smaller hydel projects of 5 MW each was fully acquired by Greenko for R655 Cr. Prior to this, it had put up its Australian unit Griffin Coal Mining Company for sale.Lanco has been looking to sell its assets to fulfill the restructuring terms of its debt which is at R7700 Cr. It has an order book of R24,359 Cr, of which 84% constitutes internal projects.

Gurgaon headquartered Lanco Infratech Limited has been driving growth in the domains of Engineering, Procurement and Construction (EPC), Power, Solar, Natural Resources and Infrastructure. The company also generates and trades power from thermal, hydro, wind, and solar sources; develops integrated properties comprising commercial and residential buildings; and explores, mines, and markets coal. Referring to divestment in wind and solar units, Lanco recently sold its 10 MW wind farm in Tirunelveli, Tamil Nadu to a spinning mill. In January 2012, the company was seeking to raise as much as $750 Mn by selling a stake in its power business to PE investors. It reported a net loss of R529.68 Cr for the quarter ended December 2013 as the company is suffering from fuel shortages and recovering of dues. It had recently decided to seek shareholders’ approval to increase the authorised share capital of the company from R500 Cr to R12,000 Cr, besides converting R152 Cr infused by the promoters into the company as equity. Other companies such as DLF, GMR Infrastructure and GVK Power and Infrastructure, among others, are also looking at divesting stake in projects and subsidiaries, besides selling assets, to raise funds to pay off debt.
Source : indianpowersector.com

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