Lanco Kondapalli Power, one of the step-down subsidiaries of Lanco Infratech, has entered into power purchase agreements (PPAs) with electricity distribution companies of Telangana and Andhra Pradesh.
The PPAs aggregate to 1108 MW to operate at 50% plant load factor (PLF) under the gas pooling mechanism for the period October 1 this year to March 31 next year at R4.70 per KWH. Lanco Kondapalli is an independent power project (IPP) located near Vijayawada in Andhra Pradesh. The combined cycle gas-based power project is being developed in three phases with a total capacity of 1,476 MW.
The realisation per unit including the Power System Development Fund (PSDF) subsidy will be R6.14 per kWh, the company said in a release.
Further, Lanco Amarkantak Power Limited (LAPL), another step down subsidiary of Lanco Infratech, had received a favourable order from the Supreme court directing the South Eastern Coalfields. to supply coal to 300 MW Lanco Amarkantak unit II, treating it as an unit having a subsisting long-term PPA.
Accordingly, LAPL executed the documentation for flexible refinancing with its lenders for 2X300 MW Unit 1 & 2. LAPL has also completed the documentation for the cost overrun financial closure of its 2X660 MW expansion project.
Similarly, three of the other step-down subsidiaries with under-construction power projects also completed the documentation for respective cost overrun financial closure – the coal-based Babandh and Vidarbha power projects each of 1,320 MW capacity and the 76 MW Mandakini hydro power 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 8000 MW by FY 2018.