Lanco's Uttar Pradesh project on schedule

Even as Lanco's pitch for the Sasan ultra mega power project gets mired in legal wrangles, its 1,000 Mw Anpara thermal power project is chugging along on schedule, with financial closure expected in October 2007.

Dismissing reports about delays and problems, company officials said they had recently invited tenders to select engineering, procurement and construction (EPC) partner for the project.

Lanco Anpara Power Pvt Ltd, the implementing company, has also set up the team for execution of the project, besides opening a full fledged office in Lucknow. 
 

MORE OF THE SAME
	ANPARA	SASAN
Competitive bidding	Yes	Yes
Record low tariffs	Yes (Rs 1.91/unit)	Yes (Rs 1.196/unit)
Second-best bidder	Reliance Energy	Reliance Energy
Allegations of  political patronage	Yes	Yes

There are a few interesting similarities between the Sasan ultra mega power project and the Anpara project. Both were awarded on the basis of competitive bidding.

In fact, Anpara was the first power project to be awarded to the private sector on a competitive bidding basis. And, in both cases, the next best bid was from Anil Ambani's Reliance Energy Ltd.

There are also allegations of political patronage in both the cases, since Lanco Kundapalli is owned by the Congress MP from Vijayawada.

The power purchase agreement for the project in UP, set to be commissioned by July 2010, was signed on November 12 last year between Lanco Anpara and the UP Thermal Power Generation Corporation. Lanco has committed to supply power at Rs 1.91 per unit.

The company has obtained environment clearance, and has also got approval to transfer 9 hectares of forest land for the power project. The land transfer would be taken up soon after the completion of Assembly election process on May 12, official sources informed.

Lanco's application for granting the status of `Mega Project' to the Anpara C project is however pending with the power ministry, sources added.

The coal linkage, the most crucial component of the project has also been completed. The coal allotment earlier made in favour of the UP Thermal Power Generation Corporation is in the process of being transferred in the name of Lanco Anpara Power Pvt Ltd.

Lanco has also obtained the permission from the Airport Authority of India, for the 70 metre high chimney for the 2X500 Mw thermal projects.

Lanco is also involved in another 330 Mw hydroelectric project in Uttarakhand to be commissioned by July 2010. The hill state will get 12% of the total power generated free of cost while the rest will go to UP.