Lanco Infra starts power supply to Haryana discoms

Gurgaon: Lanco Infratech Ltd. (LITL) on Monday announced commencement of power supply to Haryana’s distribution companies (discoms) from its domestic coal-based 300 MW second unit of its Amarkantak Power Plant in Chhattisgarh.

“With the supply at regulated tariff from this pithead plant of Lanco Amarkantak Power Limited (LAPL), the entire 1,800 MW operating coal-based power portfolio of Lanco is now utilised to its full capacity with fuel pass-through,” the infrastructure major Lanco said in a statement.

“The resumption of power supply to Haryana discoms is going to be profit assertive for us in the coming quarters as it will double the revenues of Lanco Amarkantak to around Rs.1,200 crore and increase EBITDA (earning before interest, tax, depreciation, amortisation) by around Rs.200 crore for a full year of operations,” LITL chairman L. Madhusudhan Rao said in the statement.

“It will also have a positive impact on the overall financials of Lanco Group,” he added.

The company, having last reported a profit after 12 consecutive quarters of losses, in September got a favourable order from the Supreme Court, directing state-run South Eastern Coalfields to supply coal to the 300 MW Lanco Amarkantak unit 2, treating it as a unit having a subsisting long-term power purchase agreement, the statement said.

On September 24, LITL executed the paperwork for flexible refinancing with its lenders for the 2 x 300 MW units 1 and 2.

The company has also completed the documentation for the cost overrun financial closure of its 2 x 660 MW expansion project, it said.

The court also ordered state-run Power Grid Corp to provide a transmission corridor to this project, the statement added.