The company made the announcement after market hours on Monday, 3 December 2012.
Meanwhile, the BSE Sensex was down 9.41 points or 0.05% at 19,295.91.
On BSE, 76,000 shares were traded in the counter as against average daily volume of 45.32 lakh shares in past one quarter.
The stock hit a high of Rs 14.20 and a low of Rs 14.05 so far during the day.
The mid-cap company has equity capital of Rs 240.78 crore. Face value per share is Re 1.
Lanco Infratech (LITL) said that on 1 December 2012, Madhya Pradesh Electricity Regulatory Commission (MPERC) had approved the procurement process and price for long term power procurement by Madhya Pradesh from Power Trading Corporation (PTC) to be sourced from Lanco Amarkantak thermal power station. Lanco is operating the 2x300 megawatts (MW) Lanco Amarkantak power plant in Chhattisgarh. This is Lanco Group's first domestic coal based plant, using coal from nearby mines of South Eastern Coalfields (SECL). Earlier, power supply to Madhya Pradesh from the plant could not commence due to certain disputes in the power purchase agreement (PPA) signed in 2005. The longstanding imbroglio has been recently resolved with Madhya Pradesh Power Management Company (MPPMC) (representing the state discoms), PTC, and Lanco coming together to reach a settlement, LITL said in a statement.
A settlement agreement was concluded on 16 October 2012 among the MPPMC, PTC and Lanco which market an end to the litigations at various forums and paved the way for commencement of supply of 300 MW from Lanco Amarkantak Unit 1 to Discoms of Madhya Pradesh through PTC/MPPMC on long-term basis as per CERC regulations with fuel as passthrough. In a related development, on 30 November 2012, the state government of Madhya Pradesh also withdrew the debarment imposed previously, thus enabling Lanco Group companies to participate in all government projects in the state with immediate effect, LITL said in a statement.
For Lanco, it not only assures offtake of power in the long run but also satisfies the pre-requisite to receive linkage coal from SECL via long term fuel supply agreement (FSA) as per the recent policy of Ministry of Coal and CIL, LITL said. Further, the revised PPA provides for a pass-through of energy (fuel) charges, and also enables Lanco to procure alternate fuel supplies such as e-Auction or imported coal in case of short-supply from SECL and receive the fuel charge at actuals, the company said in a statement.
Commenting on the development, Mr. L. Madhusudhan Rao, Chairman, LITL said, "We are pleased to be entrusted with the supply of power to distribution companies in Madhya Pradesh from Lanco Amarkantak Thermal Power Station which is operating 2x300 MW power plant. The revised PPA benefits Madhya Pradesh with supply of 300 MW of power on a long term basis at one of the lowest tariffs in the region determined as per CERC Regulations. We are sure that this will ensure the state uninterrupted power supply and look forward to a long and mutually beneficial relationship".
Supply of power to Madhya Pradesh Discoms through PTC from the 300 MW Unit 1 of Amarkantak power station has started effective 3 December 2012, LITL said.
LITL last week said it has entered into a memorandum of understanding (MoU) with the China Development Bank (CDB), a bank owned by the government of Peoples Republic of China, to arrange $2 billion debt for the company's two power projects i.e. Anpara Phase II and Himawat, each having capacity of 2x660 megawatts (MW) with supercritical boiler technology. Out of the total amount of $2 billion required to be raised, $600 million will be contributed by CDB, and CDB will syndicate the balance from Chinese banks and FIs, LITL said in a statement.
Lanco Infratech reported a consolidated net loss of Rs 135.93 crore in Q2 September 2012, lower than net loss of Rs 259.48 crore in Q2 September 2011. Net sales rose 67.7% to Rs 3164.18 crore in Q2 September 2012 over Q2 September 2011.
Lanco Infratech is one of India's largest integrated infrastructure developers. It is one of the largest private sector IPPs in India having an operating capacity of 4,740 MW with another 4,636 MW under various stages of execution. This includes projects based on coal, gas, hydro, solar, and wind.
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