News Detail

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Lanco Infratech&#39;s received a favourable verdict on its year&nbsp;long dispute with Haryana Power Generation Corporation (HPGCL) over the second unit of its Amarkantak power plant.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">&ldquo;As per the Appellate Tribunal for Electricity&rsquo; (APTEL) order, Amarkantak Unit 2 shall be paid regulated tariff based on the actual capital cost of the project. This would result in sustainable and profitable operation of the project at full capacity,&rdquo; said Lanco, in a press release today. The exact tariff for the power plant is yet to be known as the order has not been made public.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The 300 megawatt second unit which was commissioned, could not start generating due to the dispute, can now start generation. The power generator&#39;s power purchase agreement with Power Trading Corporation (PTC) to supply to HPGCL was terminated. This was over the non-compliance of certain PPA covenants.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The receivables from this unit have been pegged at INR 195 crore, by the end of the second quarter. The first unit of coal based Amarkantak power, which is located in Chhattisgarh, has been generating power and earning revenues, unlike the second unit.&nbsp;</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Lanco&#39;s INR 7,700 crore debt recast was approved by its lenders, last month. Amongst other developments, Lanco said that it has two cases pending verdicts with APTEL and that they were expecting favourable judgments.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">&ldquo;Once tariff orders are passed, we will take around six months for payments to be cleared. We expect the payments to come over time and not immediately,&rdquo; said Adi Babu, the chief financial officer of Lanco, told in an interview after its debt recast was approved.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The release of payments from its power plants is one of the positive developments that the company had expected after its corporate debt restructuring (CDR) package was approved by the lenders. As its payments from Karnataka state utility as well as that of Haryana are cleared, the company expects its business to start turnaround by March.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>