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Lanco Infratech plans $825 mln asset sale

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Reuters NEW DELHI
Last Updated : Sep 09 2014 | 6:28 PM IST

NEW DELHI (Reuters) - Lanco Infratech said on Tuesday it planned to sell power projects to raise 50 billion rupees ($825 million) and pay down its debts.

Lanco will sell 3,000 megawatts of generating capacity assets, V. Sreenivas, chief operating officer at Lanco Group, said in a statement. The company will use the proceeds to reduce its debts of 150 billion rupees, Sreenivas said.

Lanco, which has been negotiating with its lenders to restructure its debts since last year, has been seeking to sell assets to strengthen its balance sheet and return to profitability.

Weighed down by large debts, a slowdown in the domestic economy and delays in completing new projects, many of India's private power producers are trying to sell plants to raise cash.

(Reporting by Tommy Wilkes; Editing by Subhranshu Sahu)

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First Published: Sep 09 2014 | 6:16 PM IST

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