Lanco Infra focuses on power, EPC verticals - To scale up capacity from 1,400 MW in March 2010 to 4,000 MW by March 2011

Lanco Infratech Ltd plans to lay thrust on power generation and EPC contracts, as the company scales up its installed capacity from 1,400 MW in March 2010 to 4,000 MW by March 2011.It is also implementing additional capacity of 4,750 MW by 2013-14. The new projects will be at Amarkantak (1,320 MW) in Chhattisgarh, two more projects of 1,320 MW each in Orissa and another 1,320 MW project in Maharashtra, all thermal.

Power projects would come up with 80:20 debt-equity ratio. Of the Rs 30,000-crore outlay planned, about 80 per cent debt component and the balance of Rs 6,000 crore will be through equity from internal generation.The company will have significant cash inflows from an installed capacity of about 4,000 MW and two tollways by March 2010, Mr L. Madhusudhan Rao, Chairman of Lanco Infra, told Business Line. “The cash requirement would be spread over three to four years,” he said.

“Of special interest is the EPC business in the power sector. We won the company's maiden bid from Mahagenco, where we will handle work for 1,980-MW unit coming up in Maharashtra. The company is also shortlisted for the Ennore terminal project, along with partners. We expect to secure letter of intent,” he said.Referring to the real estate division, Mr Rao said “the company has implemented the 4 million sq.ft residential project in Hyderabad in spite of tough business environment.”On the company's interests in nuclear and solar power generation, Mr Rao said it would take some more time to get a clear picture on the private sector role in nuclear plants.