Lanco Infratech Ltd is planning to go slow on implementation of some of the ongoing projects by few months till issues relating to fuel supply are fully resolved.
The company is at advanced stage of implementing some of its thermal power plants at Amarkantak, Vidharbha and Babandh.
“There is still no clarity on fuel supply issues even though there have been assurances. By completing these projects, we will face difficulty unless fuel supply issues are fully resolved.
“Therefore, we have decided to delay implementation of some of the ongoing projects by about few months. Once we get assurance on fuel supplies, we will go ahead,” said T. Adibabu, Chief Operating Officer, Finance.
He told Business Line recently, “By delaying them by few months, this provides additional cushion for payments. And once the projects get completed, there will be cash flows. There is still not much clarity on gas supply unless there is re-allocation. We may get gas by 2015. While there have been assurances, firm coal supplies are necessary for existing and new projects.”
Debt rejig
Lanco has initiated steps to recast its debt through the corporate debt restructure process. This debt relates to the holding company. A meeting with the bankers will be held shortly.
On the company’s move to recast its debt, he said Lanco has about 20 companies in all with a total debt of Rs 35,000 crore. The CDR is for just one holding company.