Lanco Talcher strikes power supply deal with Haryana, MP

Lanco Infratech Ltd, which is in the process of setting up a 2,640-MW coal-fired plant at Talcher in Orissa, has secured a mandate for supply of 390 MW of power to Haryana and 600 MW to Madhya Pradesh.

The company, which is setting up four units based on supercritical technology each of 660 MW, has already firmed up with the Orissa Government for supply of 25 per cent of the total output.

The Chief Executive Officer of the Energy Strategic Business Unit (SBU), Lanco Infratech, told that the company received approval for supply of 600 MW from Madhya Pradesh on Wednesday and from Haryana recently.

“This Rs 10,000-crore project is being implemented with a debt equity ratio of 70:30. We are in the process of tying up finances and expect to achieve financial closure by March 2008,” Mr Lenka said.

“While the power supply agreement with Haryana has been struck at Rs 2.35 a unit, this includes 35 paise for transmission, in the case of Madhya Pradesh, we have finalised for Rs 2.32 a unit, which includes 32 paise for transmission,” he said.

“The 2,640-MW project with four 660 MW units is being developed with captive coal resources provided by the Government. All necessary clearances for the project have been secured and we are now getting into the execution mode,” he said.

Referring to the Haryana, MP and Orissa supply deals, Mr Lenka said that the project would now get into rapid execution phase and the project would be ready by first quarter of 2012.

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