Lanco group is also present in other infrastructure development and is currently in the process of setting up an information technology Park in Hyderabad.
Lanco has picked up 74% equity in the 1,015 mw coal-fired thermal power project that has been hanging fire for a decade now.L Madhusudhan Rao, chairman, Lanco and Nagarjuna Group chairman K S Raju signed an agreement in Hyderabad formalising the strategic relationship. The power project will be jointly established by both the companies, with Nagarjuna, which had promoted the project in 1996, as a minority partner with a 26% equity.The financial closure is slated to be achieved by September 2006 and will go commercial by by 2009, the Lanco group said on Tuesday. The project is the first independent power project in the country to operate on imported coal but had to go through a lot of initial difficulties on account of environmental objections from the locals and other reasons.
The Nagarjuna Power Corporation Ltd, as the Mangalore project firm is called, has a power purchase agreement with the five electricity supply companies in Karnataka for the off-take of 90% of power from the project, while it has obtained various approvals with a "mega power project" status from the Government of India. The Lanco Group is currently implementing power project with a total capacity of over 2,000 mw in thermal and hydropower sectors.
The group is also present in other infrastructure development and is currently in the process of setting up an information technology Park in Hyderabad.
