Not interested in Anpara A & B: Lanco Kundapalli

In an effort to assuage the inflamed passions of the Uttar Pradesh power employees over the privatisation of the 1,000 Mw Anpara C thermal power project, Lanco Kundapalli, the Hyderabad-based firm, has said it has no intention of acquiring the existing thermal units A and B at Anpara.

The state cabinet on September 24 had cleared the award of the contract for Anpara C to Lanco Kundapalli

Following the cabinet approval, the UP Thermal Power Generation Corporation (UPTPGC) has issued the "Letter of Intent" (LoI) to Lanco Kundapalli.

The company has deposited Rs 90 crore as bank guarantee to the corporation

"Lanco Kundapalli has always invested in new projects and we have no plan to acquire the existing Anpara A and B thermal units," said K Rajgopal, chief executive officer (CEO) and director of Lanco Kundapalli.

The CEO was here in connection with obtaining the LoI and other necessary documents from the corporation for the Anpara C project.

Anpara C is the first power project in UP to be awarded to the private sector. The process for the privatisation of the project was initiated in early 2004, which took nearly three years for completion.

"We are aware of the resentment among the power employees against the privatisation of Anpara C," said the CEO, adding "Lanco was not averse to the idea of direct dialogue with the employees for clearing their apprehensions over the privatisation of the project as our priority is to set up new projects."

The CEO said the company was running three power units in south India and work had recently been started on one power project in Himachal Pradesh. "Now we have entered UP. As per the contract, Lanco Kundapalli will sell power at the rate of Rs 1.91 per unit benefiting all. So the opposition to the privatisation of Anpara C is not based on facts," he added.

In 1996, the UP government had tried to award the Anpara C contract to the Hyundai. The plan was shelved following the vehement protest by the power employees.

The convener of the UP Power Employees Joint Action Committee, Shailendra Dube, said Hyundai had demanded the management and control of both the Anpara A and B before taking up the work for the construction of Anpara C.

He claimed that the Anpara A, B and C were situated on the same plot of land with common infrastructural facilities like the coal and ash handling plant, coal washery and other facilities.

He added it was practically impossible to separate the Anpara C from the existing A and B units and the decision to handover the Anpara C to private sector was nothing but backdoor privatisation of Anpara A and B in few years time.

Lanco Kundapalli, promoted by the Congress MP from Vijaywada, had won the 1,000 Mw Anpara C, on the basis of the lowest bid of Rs 1.91 per unit cost of power , in June this year.

The total cost of the Anpara C is estimated at Rs 4,000 crore which is targeted to be commissioned by 2011.

Lanco had outbid Reliance Energy and Essar Group for the power project. Showcased as the first tariff-based competitive bidding project, the power project has already got major approvals including coal linkages.