Lanco Infratech today said it would invest Rs 35,000 crore for setting up thermal power plants in the country and may partly raise the amount by hiving off its power business.
"We will definitely make power a separate entity...May be in the next two years," Executive Chairman Lanco Infratech L Madhusudan Rao told reporters while unveiling the group's new logo.
Lanco Infratech plans to have a power generation capacity of 15,000 Mw by 2015 for which it requires investment to the tune of Rs 35,000 crore. The current installed capacity of the company is 3,300 Mw.
"About 9,300 Mw projects are under operation and under advance stages of construction and work would also commence on the remaining 6,000 Mw in the next 3-4 months as the funds would be tied up by that time," Rao said.
The company is in talks with various banks and financial institutions for funding the debt portion of the Rs 35,000 crore investment. The project would be funded at a debt and equity ratio of 80:20.
Lanco Infratech, which is currently sourcing the power equipment from China, is open to the idea of manufacturing it on its own.
"We are looking at it, but right now it is too early to comment," Rao said.
The company is spreading its operations overseas and is hopeful of winning power projects in Bangladesh, Indonesia and in the Middle-East.
"We have qualified for projects in Bangladesh, Indonesia and in the Middle-East...They are yet to be finalised," he said.
Lanco Infratech, which acquired Griffin coal mine in Australia, is now focusing upon acquisition of more coal assets in Indonesia, South Africa, Australia and India.
"Right now we have sufficient coal reserves to fulfil our demand," he added.
