Lanco Infratech today said it has pre-closed Rs 205.42 crore term loan with Yes Bank and expects cash flows to increase within 2-3 years after its projects become operational.
"Lanco Infratech Limited pre-closed its outstanding term loan with Yes Bank to the extent of Rs 205.42 crore by obtaining lower interest rate term loan from another bank," the company said in a statement.
The term loan was taken for a couple of solar power projects that are operating well and have healthy cash flows, it said.
However, it said other term loans of Rs 61.04 crore from Yes Bank for its solar power projects are continuing.
The company is expecting a turnaround in 2-3 years when its all projects would be operational and improve its cash flows.
"As many as 5,000 workers are working on our different ongoing projects. We see a turnaround in next 2-3 years when all of our projects would be operational. The cash flows will increase then," Lanco Infratech chief operating officer T Adi Babu told PTI.
"The company is resolving issues related to fuel supply. Some of our power projects got gas supply which would increase our cash flows," he added.
The company said last month that it might sell power projects having capacity of 3,000 MW from 2018 onwards and expects to get Rs 25,000 crore, which would help pare debt and also infuse fresh capital into the group.
Besides, it has plans to increase power portfolio to 8,000 MW by 2018 from the current 3,400 MW.
Lanco has recently concluded the sale of its Udupi Power plant to Adani for Rs 6,300 crore. The transaction is considered as one of the largest takeovers in the country's thermal power space.
Lanco Infratech Limited is into engineering, procurement and construction (EPC), power, solar, natural resources and infrastructure.
