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Sunday, Mar 24, 2002

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Lanco lines up Rs 400-cr investment in power sector

C.R. Sukumar


LANCO Green Energy Corporation Ltd, a part of the Hyderabad-based Rs 1,500-crore Lanco group, is currently on the verge of achieving financial closure for four of its subsidiaries which are setting up non-conventional power projects in various States.

These four subsidiaries were setting up biomass-based power plants with an aggregate capacity of 37 MW. Lanco Green Energy, as the holding company of these subsidiaries, proposed to set up projects with a total capacity of 100 MW at a capital investment of around Rs 400 crore, said the Lanco group Chairman, Mr L. Rajagopal.

Addressing reporters at the Lanco Industrial Complex located at Rachagunneri near Kalahasthi in Chittoor district of Andhra Pradesh, he said five projects of the subsidiaries were expected to take off in the next three to nine months.

Stating that the debt-equity ratio would be maintained at 75:25 for all these independent companies under the umbrella of Lanco Green Energy, Mr Rajagopal said negotiations were on for forging strategic alliances with global majors while retaining a controlling stake of 51 per cent.

Rithwik Energy, one of the subsidiaries of Lanco Green, has already set up a six-MW plant at a cost of Rs 5 crore at the Lanco Industrial Complex.

Having already signed the power purchase agreement (PPA) with the State electricity board for selling power at Rs 3.32 per unit and achieved financial closure, the project is set to take off by May-end.

Lanco Green is also setting up a 12 MW biomass-based power project at Ongole in Andhra Pradesh. The project, which is being executed by Lanco Green's subsidiary — Clarion Energy — has also signed a PPA with the State electricity board. The other projects include a 16-MW plant in Karnataka, a three-MW wind mill at Chitradurga in Karnataka and a hydro power project in Himachal Pradesh.

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