Coal news and updates

Lanco infra completes UPCL deal with Adani

April 21: Lanco Infratech on April 20 said that it has completed the sale of its Udupi Power Plant (UPCL) to Adani Power Limited,

The company had announced the sale in August 2014 for Rs 6,300 crore to cut its increasing debt. The sale could not be executed as the company failed to get approval from all lenders of the project.

“The overall transaction will give boost to Lanco and aid the company to…leverage the opportunity that the new government will create in the power and infrastructure sector within next two years,” the company said in a statement.

The Udupi project had long-term debt worth Rs 4,275 crore and short-term debt of Rs 2,147 crore.

UPCL is based on 100% imported coal with a captive jetty of 4 million tons (mt) a year and an external coal handling system in the New Mangalore Port. The plant’s facility can be expanded as Udupi has already signed a pact with the Karnataka government for further expansion of the capacity by 1,320 MW, the statement said.