Lanco Infratech has become the successful bidder for the 1x660-MW supercritical Ennore thermal power station expansion project.
The EPC contract of ₹3,960 crore is from Tamil Nadu Generation and Distribution Corporation.
Tamil Nadu Chief Minister J Jayalalitha handed over the confirmation letter to L Madhusudhan Rao, Executive Chairman, Lanco Infratech, according to a company statement.
The letter of intent would be issued shortly as confirmed by the Tamil Nadu Generation and Distribution Corp.
With this contract, the diversified infrastructure company will have an order book of ₹27,005 crore.
T Adibabu, Chief Operating Officer, Finance, Lanco Infratech, told Business Line that this win is important for the project as it comes amidst tough competition.
The contract, which involves equipment and installation, is to be executed within four years.
The company, which has recently concluded a corporate debt restructure (CDR) process with a clutch of bankers, is also seeking to revive another contract it had bagged from Gujarat state utility.
The ₹3,300-crore order was set aside as there were delays. “We have communicated to them and expect to bag that contract for execution,” he said.
Of the ₹27,000-crore order book, about ₹12,000 crore is from external projects and rest for execution of projects within the company fold.
The company is keenly looking at taking up EPC contracts as the financial commitment will be less when compared to taking up new projects.
This is mainly because of tough equity market, he explained.