Lanco's MP power plant will come up in Balaghat

Lanco Infratech Ltd has now proposed to set up its 1,200 Mw power project in Balaghat and not in Chhindwara.

The company inked a deal with the Madhya Pradesh government on January 17 at Khajuraho for the project (1,200 Mw plus or minus 200 Mw). The firm dropped the idea of setting up its unit in Chhindwara because it had not been allocated coal blocks.

The company will invest Rs 5,000 crore in the project. It has been given "in principle" sanction for land acquisition and water supply.

A state power department source told Business Standard: "The project will now come up in Balaghat." The company had asked the Centre for supply from the Mandla North coal block in the Pench Kanhan coal-mining area.

However, a state government's supplementary recommendation to the JP group watered down the company's plan to get coal from the Chhindwara mines.

"Lanco has asked for coal and environment clearance, and has been given 'in principle' sanction for land acquisition and water supply. We hope the firm is able to announce its schedule soon," the source said.