Leading infrastructure firm Lanco Infratech is all set to tie up funds of about Rs 25,000 crore during the current fiscal to finance its power capacity expansion programme, a senior company official said today.
"We expect it to close in the current fiscal itself and are in talks with ICICI Bank, Power Finance Corporation, Rural Electricity Corporation among others," Lanco Infra Chief Financial Officer J Suresh Kumar said.
The company plans to add 6,000 MW power generation capacity in its portfolio by 2015, he said, adding that about Rs 30,000-35,000 crore investment would be required for the expansion.
"Power projects of about 9,300 MW are under construction and we plan to take it to 15,000 MW by 2015. This will require an investment of about Rs 30,000-35,000 crore.
"Of this investment, we plan to tie up funds of Rs 25,000 crore from markets, most of which will be raised as debt, while the rest of the money will come from internal accruals," Kumar said, adding that the money will be released as and when required.
Besides this, Lanco is also in talks with Chinese banks for raising small loans to the tune of $400 million (Rs 1,800 crore), he said.
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"We are talking to them, but we don't want to go in a big-bang way. This will be our first experience with them, so we are taking one project at a time and are looking at raising about $400 million," Kumar said.
The company, which has a power generation capacity of about 3,300 MW currently, will be adding another 1,500 MW capacity by March, 2012, the Lanco CFO said.
The second unit of 600 MW at Anpara power project in Uttar Pradesh will be commissioned by September, while the company is aiming at commissioning of 600 MW capacity at Udupi by December, he said.
Talking about the natural gas-based power plant at Kondapalli in Andhra Pradesh, Kumar said that the third unit of 742 MW capacity will be ready by March, 2012 and the company is waiting for gas allocation from the government.
The company requires about 3.75 million cubic metres per day of gas as fuel for its Kondapalli power plant, he said.