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The diversified infrastructure company Lanco Infratech Ltd has finalised a capital expenditure of about Rs 5,000 crore for the financial year 2012-13.
“The entire fund requirement has been tied up and the focus is on implementing the ongoing power projects expeditiously and increasing the cash flows,” said Mr T. Adibabu, Chief Operating Officer, Finance, Lanco Infratech.
Supply issue
During an exclusive interaction with Business Line , Mr Adibabu said Lanco has an installed capacity of 4,400 MW and the focus is on to first utilise the full capacity, including the unit two of Udipi power project, where the transmission line is being laid.
The commercial operations of Udipi and Anpara power projects and two road projects have begun.
With coal tied up for these projects, including imported for Udipi and through a fuel supply agreement for Anpara and Amarkantak projects, the company would be able to add to cash flows as all these plants would be operating at their capacity, he said.
The gas supplies continue to be an issue for all gas-based plants in the country as KG gas supply has come down.
two-tier structure
While the company would be adding another 250 MW of gas plant capacity at Kondapalli, the supply issue is still not clear.
“We have put in place a two-tier Lanco Power Holding Company structure under Lanco Power Ltd, a company subsidiary.
“The power vehicle of the group will now have two holding companies — Lanco Thermal Power Ltd to handle thermal power assets, and Lanco Hydro for hydel project assets,” he said.
By creating this two-tier structure, Lanco sees investments coming into them. Investors prefer either thermal or hydel assets.
Anpara and Udipi thermal plants have now been transferred to power holding company, he said.
Lanco has decided to offload stake in the two road projects in Karnataka.
The idea is to dilute stake as per the contract norms in a phased manner and take up new projects, Mr Adibabu said.
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