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Lanco attains serenity with Telangana


  • Lanco Infratech has tied up with Telangana power utilities, to sell 325 Mw to the power deficit state, from its two merchant plants located in Andhra Pradesh.
  • The tie constitutes a bulk of over 500 Mw of power that will be generated from the stranded gas power project under the Centre’s Power Sector Development Fund (PSDF) scheme.
  • Lanco sources as well as energy officials of Telangana confirmed the development.

Private players

  • GMR, GVK and Lanco, whose stranded gas power assets are located in AP, had won gas allocation for a little over 2,000 Mw capacity in the recently-held reverse bidding for a four-month period beginning June 1.
  • The plants will have to be operated at 25 per cent load factor in the period which means they effectively generate a quarter of the installed capacity.
  • Power generation from the stranded capacity is expected to start from June 12 or June 15 as the gas supply schedules are yet to be finalised by GAIL.

Lanco deal

  • Lanco’s power supply agreement with Telangana comes as a relief since the power surplus AP, was not in a position to absorb the additional generation on its own, leading to uncertainties about the success of the programme.
  • Earlier,  the state had decided to buy power only from those stranded plants that have power purchase agreements.
  • AP power utilities had decided to procure about 140 Mw from GVK’s 230-Mw Jegurupadu Stage II and GMR’s 370-Mw Vemagiri plant under this policy, forcing the other projects to find other markets.
  • AP Transco officials said  the state government had changed its stand to facilitate procurement of power from non-PPA plants as well. This will help the remaining capacity to be absorbed locally.
  • An official of the Lanco group said, their two merchant power plants would start generation in a day or two.

 Source:Business Standard

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