Lanco to sell 3,000-MW capacity, raise Rs. 5,000 cr.

Lanco Infratech is planning to sell 3,000 MW of capacity to raise Rs. 5,000 crore. The funds raised will be used to reduce the company's debt, currently about Rs. 35,000 crore.

Last month, the company had sold a 1,200-MW thermal plant in Udupi to Adani Power for Rs. 6,000 crore.

Speaking to Business Standard, a Lanco spokesperson said the company hadn’t identified the assets to be sold, adding these projects could either be those already operational or the ones under various stages of development. Lanco has 4,732 MW of operational capacity, 4,636 MW under construction and 9,000 MW under development.

The company had stepped into the power sector in 2000. By 2011-12, its generating capacity stood at 1,000 MW; for that year, it posted a profit of Rs. 740 crore. For 2013-14, it incurred a loss of Rs. 671 crore, despite increasing capacity fivefold to 4,732 MW.

The company says since the past two years, the power sector hasn’t fared well, owing to challenges such as issues relating to transmission and fuel, besides the dismal financials of distribution companies.

BS