The Hindu Business Line : Lanco Infratech concludes corporate rejig

The Managing Director of Lanco Infratech, Mr G. Venkatesh Babu, said the restructure process was initiated last year before the initial public offer and has been concluded with the shareholding in different groups getting consolidated. These include investments in several power projects such as Nagarjuna in Mangalore and Aban in Tamil Nadu. Speaking to Business Line, Mr Babu said, “All the investments would now be handled through special purpose vehicles (SPVs) and we are agg ressively pursuing other ultra mega power projects (UMPPs) and coal bidding process in Chhattisgarh, Uttaranchal and Orissa.”

Mr Babu said the reorganisation was undertaken to consolidate the power, construction and property development assets of the promoter group and the Lanco group under the company.

This included acquisition of promoters’ and other partners’ assets in various subsidiaries and associates including 25.1 per cent stake in Lanco Kondapalli and 13.3 per cent in Aban Power Company.

Last year, the company also acquired 74 per cent stake in Nagarjuna Power Company.

Investments

Following the restructure process, Lanco Infratech has become a holding-cum-operating company assuming the role of an integrated infrastructure developer with majority investments in various SPVs. Broadly, Lanco Infratech Ltd, the holding company, now operates through three divisions — one handling power projects, second roads and infrastructure and the third engaged in property development. The property development projects cover Hyderabad, Chennai among other places.

Asked about the status of implementation of various power projects, Mr Babu said that the company has achieved financial closure for most of the power projects and they have all gone into the execution mode.

ANPARA ‘FC’ BY YEAR END

The financial closure for the 1,000 MW Anpara ‘C’ is expected to be concluded later this year and work poised to commence during the financial year.

And other power projects such as the Amarkantak in Chhattisgarh, Teetsta in Sikkim and Nagarjuna Power in Karnataka have got into the execution mode, he explained.

More Stories on : Restructuring | Real Estate & Construction | Power

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