Lanco Infratech's project lenders have agreed to the company's proposal to increase the cost of four of its power projects by nearly 30 per cent. This would allow Lanco to resume project execution work after more than two years.
The power projects facing huge cost overruns are three coal fired projects at Amarkantak II, Babandh and Vidarbha, each of 1,320 MW, and a 76 MW Mandakini hydro power project. These projects together are now expected to cost over Rs 33,000 crore.
Amarkantak II in Chhattisgarh is financed by a consortium of lenders led by Power Finance Corporation, Babandh project in Odisha is backed by an ICICI Bank headed group and the Vidarbha project in Maharashtra by institutions led by Punjab National Bank.
Completion of the four stalled projects will increase Lanco Infratech's power generation capacity to more than 8,000 MW and revive its EPC revenue.
More Project Info:Coal Based Power (Amarkantak) Project
Coal Fired Thermal Power (Khurunti) Project
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