Lanco Infratech’s arm Lanco Kondapalli Power Ltd has signed an agreement for purchasing power with electricity distribution companies of Telangana and Andhra Pradesh.
“Lanco Kondapalli Power Limited one of the steps down subsidiaries of Lanco Infratech Limited entered into PPAs with Telangana and Andhra Pradesh discoms on September 23 and 24 respectively aggregating to 1,108 MW to operate at 50 per cent plant load factor under the gas pooling mechanism for the period October 1, 2015 to March 31, 2016 at Rs 4.70 per unit,” the company said.
The realisation per unit including the Power System Development Fund subsidy will be Rs 6.14 per unit.
It further said that Lanco Amarkantak Power Limited (LAPL), another step down subsidiary of Lanco Infratech, has received order from the Supreme Court directing the South Eastern Coalfields Ltd to supply coal to the 300 MW Lanco Amarkantak unit II treating it as an unit having a subsisting long-term PPA.
LAPL on September 24, 2015 not only has executed the documentation for flexible refinancing with its lenders for 2×300 MW Unit 1 & 2 but also it completed the documentation for the cost overrun financial closure of its 2 x 660 MW expansion project.
The engineering, procurement and construction order book of Lanco (including power and solar projects) stands at Rs 28,158 crore. The financial closure of the cost overrun proposals of the above projects will enable the execution of majority of this order book within the next two years.
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