Lanco launches Rs. 6,930cr augmentation

Lanco Infratech has drawn up plans to add capacity to the tune of 1,320mw at its Uduppi Power Corporation Limited (UPCL), a special purpose vehicle of the company to manage its existing 1200mw coal fired thermal power plant in Uduppi area of Karnataka entailing an investment of Rs. 6,930 cr.

According to Vice President, Kishore Alva, the company is currently selecting the engineering, procurement and construction (EPC) contractors, through global competitive biddings and work on the site is set to start in the next two to three months. The on going capacity addition is being executed as a part of its phase II plans under which it is setting up 2x660mw coal fired units in the proximity of its existing plant.

The upcoming power plant will utilize a blend of imported and indigenous coal at 70:30 ratio energy bases and the management is expected to sign the power purchase agreements (PPAs) with the power utilities of different governments and merchant power traders very shortly. For funding the project the company is expecting that PFC led consortium of lenders would arrange the funds for the on going expansion of the project, he claimed.