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Lanco Vidarbha Thermal Power Limited, a subsidiary of Lanco Infratech Limited, now faces proceedings in the National Company Law Tribunal with the Punjab National Bank dragging it to the tribunal in Hyderabad for resolution.
The diversified Lanco group’s woes seem to continue with Lanco Infratech Limited already on liquidation process and another group entity tackling legal proceedings and the Vidharbha unit is now taken to NCLT, Hyderabad.
Petitioning the NCLT Hyderabad bench, the PNB has pleaded to take the case for the Corporate Insolvency Resolution Plan under the Insolvency and Bankruptcy Code.
Mounting woes
Highlighting the fact that initially Lanco Vidarbha was sanctioned various limits of up to ₹1,340 crore (including corporate guarantees, and the disbursal was ₹786 crore), the bank mentioned that separate civil proceedings were initiated for recovery of dues as a part of the consortium of banks. The project cost was initially ₹5,549 crore and this was increased later and the limits too increased as the cost had gone up.
The Lanco management has taken up a 2x660 MW coal-fired thermal power project at Wardha in Mahrashtra after securing various clearances including environmental, with fuel linkage from South Eastern Coalfields Limited.
Following delays in payments and delay in project execution, the lenders have decided to initiate recovery proceedings. Post the Banking and Insolvency Code, a petition has been filed in the NCLT Hyderabad to facilitate recoveries through a resolution plan.
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