Debt-hit infrastucture firm Lanco Infratech on Monday concluded the sale transaction with Adani Power of its Udupi power plant at an enterprise value of R6,300 crore. The announcement regarding the sale was made in August last year, as part of Lanco’s debt restructuring strategy.
The deal helped Lanco Infratech to reduce its debt position, both long and short term which currently stands at R4,275 crore and R2,147, respectively.
Udupi has set up two 600 MW imported coal based power project at Udupi in Karnataka. It is based on 100% imported coal with a captive jetty of 4 million tonne per annum and an external coal handling system in the new Mangalore Port Trust.
“The plant’s facility can be expanded as Udupi has already signed an agreement with the Karnataka government for further expansion of the capacity by 1,320 MW,” the company said in a statement.
In FY14, the Udupi thermal power project had a net profit of R24 crore, with revenues of R3,037 crore.
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