Lanco looks to sell Rs 1,000cr assets
To shed non-core assets in road, wind and solar segments Lanco posted a loss of Rs 1,073.3 crore in the...
To shed non-core assets in road, wind and solar segments Lanco posted a loss of Rs 1,073.3 crore in the full year ended March 2013, bogged down by dues from power distribution companies and under-performance of assets. In the previous fiscal, the loss was at Rs 112 crore. Hyderabad: Lanco Infratech plans to raise Rs 1,000 crore this fiscal by selling non-core assets across wind, solar and road segments as part of its efforts to reduce debt burden. The diversified group, which has already started shedding non-core assets, recently mopped up around Rs 42 crore by selling some wind energy assets in Tamil Nadu. "By selling non-core assets in the current fiscal, we expect to mobilise about Rs 1,000 crore," said a senior company official. According to the official, the group plans to sell non-core assets across road, wind and solar segments. The group's net debt touched Rs 33,593.5 crore at the end of March 2013. Meanwhile, the company would continue to focus mainly on power projects and EPC business. At present, Lanco has an electricity generation capacity of nearly 4,000 MW and about 4,000 MW is under construction. Lanco posted a loss of Rs 1,073.3 crore in the full year ended March 2013, bogged down by dues from power distribution companies and under-performance of assets. In the comparable period, the loss was at Rs 112 crore. Till March this year, the company had receivables of nearly Rs 3,000 crore from various state discoms. With regard to roping in a strategic investor, the company official said the process is getting delayed due to overall problems in the power sector. "The power sector is not the interested sector of investors. A slew of issues including fuel shortages and financial problems of discoms, are making the sector less attractive," he added. A part of 25-year-old Lanco Group, Lanco Infratech is mainly into engineering, procurement and construction (EPC), power, solar energy, natural resources and infrastructure business. It became a listed entity in November 2006 following an initial public offering (IPO). The company strategic plan called Lanco's Vision 2015 aims at achieving industry leadership with aggressive growth plans for the business verticals that it operates in. In a strategic move, Lanco through its Australian subsidiary, Lanco Resources Australia, has acquired Griffin Coal Mining Company and Carpenter Mine Management. Griffin Coal owns the largest operational thermal coal mines in Western Australia, producing around 4 million tonnes per annum (mtpa) of coal which can be ramped up to upto 18 mtpa in the near term, post development of evacuation infrastructure. Lanco also has strategic global partnerships with power companies such as Genting, Harbin, GE, Dongfang and Doosan. The group employs over 6,458 people and is a privileged member of the World Economic Forum. (With inputs from PTI)
26 Jun 2019 1:43 PM GMT