JSW Energy close to buying Lanco's Udupi plant

Acquisition will help the firm in realising its ambitious expansion plan of having 11,770 MW power generation capacity

JSW Energy is close to acquiring Lanco Infratech’s 1,200 Mw Udupi power plant in a deal worth nearly Rs 6,000 crore, industry sources said. The acquisition would help the Sajjan Jindal-led firm in realising its ambitious expansion plan of having 11,770 Mw power generation capacity against 3,140 Mw at present.

The deal, which is at advanced stages of negotiation, would involve JSW Energy taking over more than Rs 4,000 crore debt associated with the imported coal-fired Udupi plant, they said. When contacted, a JSW Energy spokesperson said, “The company as a policy does not respond to speculative reports or market rumours.”

Lanco Infrateach declined to comment. Faced with challenging business conditions, Lanco has been looking to sell some of its assets including Udupi plant.

The diversified group has started shedding some of its non-core assets. Among others, last year it sold some wind energy assets in Tamil Nadu.

The 2x600 Mw Udupi plant requires around 4 million tonnes imported coal a year and it uses sea water to meet the condenser cooling and other water requirements. The power generated from Udupi Power Plant is evacuated through a dedicated 400 kV transmission line.