BL reported that Lanco Infratech Limited through its subsidiary Lanco Amarkanatak has bought out a German lending agency’s stake in the 2x300 MW project for about INR 48 crore.

This is part of the share purchase agreement executed between Lanco and DEG-Deutsche Investitions-Und Entwicklungsgesellshaft MBG for about 3.9 crore shares.

Mr Venkatesh Babu MD of Lanco Infratech said “The German firm had invested in the project based in Madhya Pradesh about 2 and a half years ago and we are exercising the right as per the share purchase agreement.”

Mr Babu said that “The 2,600 MW project is being implemented with a debt equity ratio of 80:20. The first unit of 300 MW will shortly be synchronized with the grid. The second unit would be ready for commissioning by the year end. The coal linkage for the project was secured from the Southern Coal Fields.”

He said “As a part of the expansion project, we are taking up the Amarkantak expansion for 1,320 MW of 2 units of 660 MW each. Most of the clearances including environmental for the project have been received. We have secured coal linkage for the first unit and are working on linkage for the second unit.”

(Sourced from Business Line)