Lanco's Udupi power plant sale hits hurdle: Sources
Private power producers are confronted with fuel scarcity, high debt and abysmal condition of state electricity boars that has not only impacted financial of firms but is also keeping investors at bay.
June 18, 2013 / 15:52 IST
Lanco Infratech's Udupi power project sale has hit a regulatory hurdle, exclusive sources told CNBC-TV18. The 1,200 megawatt coal-fired plant is being affected by the rise in Indonesian coal price and delay in tariff revision.
Sources further say that clarity on tariff will help decide right price and bankers are currently valuing the plant at around Rs 3000 crore.Insiders further add that the firm has not yet placed final bids and there is a possibility that JSW Energy may show interest pot clarity in tariff. However, JSW refused to comment on market speculation. Udupi plant currently contributes 42 percent to the firm's overall power segment and is considered major growth driver. Must Read: Will do what it takes to improve cash flow: Lanco Infra Private power producers are confronted with fuel scarcity, high debt and abysmal condition of state electricity boars that has not only impacted financial of firms but is also keeping investors at bay. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
