Lanco Infratech today said it plans to raise Rs 5,000 crore by selling power projects having total generation capacity of 3,000 MW, amid lenders looking at ways to improve the group's financial position.
"Lanco plans to sell 3,000 MW assets to raise Rs 5,000 crore cash and to reduce the additional debt of Rs 15,000 crore. Since last one year, we have been working on each of the project to settle the issues and bring back viability," a company statement said.
Recently, Lanco Infratech entered into a pact to sell its 1,200 MW Udupi thermal plant to Adani Power in a deal worth over Rs 6,000 crore.
From the sale of its Udupi plant, the group expects to see a net cash inflow of Rs 925 crore after adjustments.
The diversified group, with interests in power and EPC segments, has an aggregate outstanding debt of about Rs 49,000 crore from around 47 lenders, according to sources. The company has an order book of Rs 21,000 crore.
Citing various measures, including the background of Corporate Debt Restructuring (CDR) approval and various meetings with bankers and strategic partners, the company said it was confident of driving the group into same level of profitability again.
The group has operational capacity of 4,647 MW and 4,636 MW of projects are under implementation.
Further, Lanco said there are many unresolved macro- economic issues in the power and infrastructure sector that are being taken up by the new government.
"The government is also sorting out the problem that belies the discoms and the fuel shortage issue that is taking the sector down," it added.
The company said that since two years, the power sector has not been able to perform due to various major challenges such as transmission issues, and fuel issues besides deteriorated financial conditions of discoms.
"These major issues have distanced the investors from the sector as investment into power sector should be looked at long term and not short term since value to the investment can be realised in 25 to 30 years irrespective of PPAs (Power Purchase Agreements).
"Further, due to the damaged macro-economic environment since three years, funds could not be raised through IPO or QIP," it noted.
