Lanco signs PPAs with TS, AP discoms

Lanco Kondapalli Power, a step-down subsidiary of Lanco Infratech (LIL), has entered into power purchase agreements (PPAs) with electricity distribution companies of Telangana and Andhra Pradesh.

Lanco will supply 1,108 MW of power operating at 50 per cent plant load factor (PLF) under the gas pooling mechanism for a six-month period from 1 October 2015 to 31 March 2016 at Rs4.70 per kWh.

LIL said the realisation per unit, including the Power System Development Fund subsidy, will be Rs6.14 per kWh.

According to LIL, its other step-down subsidiary, Lanco Amarkantak Power Limited (LAPL), was given a favourable order from the Supreme Court, directing the South Eastern Coalfields Limited to supply coal to the 300 MW LAPL Unit II, treating it as a unit having a subsisting long-term PPA.

On 24 September 2015, LAPL executed the documentation for flexible refinancing with its lenders for 2 x 300 MW Unit I & II. It has also completed the documentation for the cost overrun financial closure of its 2 x 660 MW expansion project.

Similarly, LIL stated, three of its other step-down subsidiaries with under construction power projects have completed the documentation for respective cost overrun financial closure – the Babandh and Vidarbha power projects and the Mandakini hydropower project.

In addition, the consortium of lenders to the 500 MW Teesta hydro power project has decided to convert part of their loans in the project into equity under the strategic debt restructuring mechanism as an interim measure pending the induction of a strategic investor into the project.

The company said that these are significant developments giving clear visibility to the completion of these projects costing almost R40,000 crore. With the commissioning of these plants, the company will have a consolidated operating power capacity of around 8,000 MW by FY 2018.