Lanco Infratech Ltd through its subsidiary Lanco Amarkanatak has bought out a German lending agency’s stake in the 2×300 MW project for about Rs 48 crore.
This is part of the share purchase agreement executed between Lanco and DEG-Deutsche Investitions-Und Entwicklungsgesellshaft MBG for about 3.9 crore shares.
The Managing Director of Lanco Infratech, Mr Venkatesh Babu, told Business Line, “the German firm had invested in the project based in Madhya Pradesh about two-and-a-half years ago and we are exercising the right as per the share purchase agreement”.
Mr Babu said that the 2,600 MW project is being implemented with a debt equity ratio of 80:20. The first unit of 300 MW will shortly be synchronised with the grid.
The second unit would be ready for commissioning by the year end.
The coal linkage for the project was secured from the Southern Coal Fields.
“As a part of the expansion project, we are taking up the Amarkantak expansion for 1,320 MW of two units of 660 MW each. Most of the clearances including environmental for the project have been received. We have secured coal linkage for the first unit and are working on linkage for the second unit,” he said.
Source: The Hindu Businessline