Lanco's effort to keep Amarkantak power project afloat might sink

Sources say close to 200 people have resigned due to non-payment of wages

Lanco Infratech’s effort to rescue its Amarkantak power project in Madhya Pradesh might go nowhere, with insolvency proceedings initiated by one of its lenders, IDBI Bank. 

The approval of the National Company Law Tribunal is required for any debt restructuring or bailout for companies under an insolvency scanner. For the second phase (2x660 Mw) of the project (units three and four), Lanco had requested a cost overrun facility from government-owned Power Finance Corporation (PFC). The latter is lead lender of the consortium that gave loans totalling Rs 10,000 crore for the project.

PFC executives say they approved it but this