Lanco Infratech

Lanco Infratech (Lagadapati Amarappa Naidu and Company Infratech) was a large Indian conglomerate involved in construction, power, real estate, and several other segments. In 2010, the group of companies was listed among the fastest growing in the world.[1] In 2011, the group became the largest private power provider in India. Lanco was one of the first Independent Power Producers (IPP) in India.

Lanco Infratech Limited - lnsolvent Company
TypePublic company - Suspend Trading
IndustryEnergy
Infrastructure
Founded1986
Headquarters
New Delhi, India
Number of locations
Global
Key people
Lagadapati Madhusudhan
Lagadapati Rajagopal
ProductsNatural gas
Real estate
electricity generation & distribution
Number of employees
Liquidation in process
Websitewww.lancogroup.com

History

Lanco was founded by a businessman Lagadapati Amarappa Naidu and his nephew Lagadapati Rajagopal, who was a member of 15th Lok Sabha representing Vijayawada from Indian National Congress. While Rajagopal remains inactive, his brother Lagadapati Madhusudan Rao is the executive chairman. Another brother Sridhar Lagadapati, was involved with the company in the early years, but now heads the related entertainment business, Larsco.

Lanco grew at a tremendous pace since the early 1991s. Initial growth was driven by large contracts primarily in construction. Later, other infrastructure areas such as power generation, transportation were also added.

Business
  • Engineering, Procurement & Construction (EPC)
  • Power - Thermal, Hydro, Wind, Solar
  • Natural Resources - MINES
  • Infrastructure

Major operational power plants
  • 2 X 300 MW Lanco Amarkantak Power Limited - Two units of 300 MW are already commissioned.
  • 2 X 600 MW Lanco Anpara Power Limited - One unit of 600 MW commissioned in December 2011 and second unit of 600 MW was commissioned in January 2012. The power plant is located in Sonebhadra district of Uttar Pradesh.
  • 2 X 600 MW Udupi Power Corp. Limited - Commissioned in 2012, the power plant is located in Udupi district, Karnataka. On 14 August 2014, Adani Power Ltd, controlled by billionaire entrepreneur Gautam Adani, has acquired the plant in a Rs. 6,000 crore deal.[2]
  • 1466 MW Lanco Kondapalli Power Limited - Gas based Combined Cycle Power Plant located at Kondapalli Industrial Development Area near Vijayawada in Andhra Pradesh.
  • 120 MW Lanco Tanjore Power Company Ltd - Gas based Combined Cycle Power Plant located at Karuppur village of Tanjore district, situated around 260 km from Chennai, Tamil Nadu.
  • 20 MW Hydro Power Plants

At this stage it has another 7000+ MW under construction and 10,000+ MW under Development and is heading towards successful completion of its Vision of 15,000+ MW by 2015. Major Power Projects under construction are:

  • 2 X 660 MW extension of Lanco Amarkantak Power Limited
  • 2 X 660 MW Lanco Vidarbha Thermal Power Limited
  • 2 X 660 MW Lanco Babandh Power Limited
  • 4 X 125 MW Lanco Teesta Hydro Power Pvt Ltd - NHPC will take over this plant as of 2019.
  • 2 X 76 MW Lanco Mandakini Hydro Energy Pvt Ltd
  • Turnkey EPC for 100MW solar thermal project for KVK Energy in Rajasthan.
  • Complete EPC for a 75 MW crystalline technology-based PhotoVoltaic solar power project in Dhule, Maharashtra, for Maharashtra State Power Generation Co Ltd Mahagenco.[3]

Debt restructuring

In June 2013, Lanco had won a contract for setting up two 300 MW power plants in Gujarat. However, the contract was cancelled in October 2013, when the company failed to put up the 10% guarantee required in the contract. [4]

By July 2013, the company had filed for debt restructuring, citing a business slowdown.[5] In September, it was revealed that the company had cut down its employees by nearly half.[6] In December 2006, the company won a large contract citing a collaboration with Singapore firm Globeleq.[7][8]

In 2007, after winning the bid for the 1000 MW Anpara-C power plant, Lanco requested that the power output be re-negotiated. Some competing firms protested[9] since the re-negotiation made the initial bidding meaningless. However, Lanco managed to retain the Anpara project.[10] Repeatedly tarnished by charges of corrupt practices[7][9][11][12][13][14] the company ran into financial trouble and has filed for Corporate Debt restructuring[15] in July 2013.[16][17]

In late 2017 the company faced insolvency proceedings, with the National Company Law Tribunal suspending the board.[18][19]

References
  1. "Companies To Watch". Forbes.com. 27 September 2010. Retrieved 7 March 2011.
  2. "Adani To Buy Lanco's Udupi Plant". Bloomberg TV India. 14 August 2014.
  3. "Lanco Solar bags EPC contract for 75-MW solar unit from MahaGenco". Business Line. 26 May 2011.
  4. R. Yegya Narayanan (18 October 2013). "Failure to provide guarantee: Lanco Infratech loses Rs 3,300-cr contract". The Hindu.
  5. Economic Times (27 July 2013). "Lanco Infratech to restructure Rs 7,500 crore debt burden". The Times Of India.Ailing infrastructure firm Lanco Infratech, which has a consolidated debt burden of over Rs 46,200 crore, said it has approached the lenders for restructuring the debt of some Rs 7,500 crore at the holding company level.
  6. pti (3 September 2013). "Lanco Group cuts down 4,000 employees due to slowdown". Times of India.
  7. "Lanco's Sasan bid annulled". Business-standard.com. 25 July 2007. Retrieved 7 March 2011.
  8. Lanco blames Globeleq for trouble over Sasan - Livemint
  9. "Reliance Power cries foul over Lanco Anpara plans". Financialexpress.com. 6 October 2007. Retrieved 7 March 2011.
  10. B Dasarath Reddy (30 March 2007). "Newsmaker: G Venkatesh Babu : In the midst of controversy". Business Standard.
  11. M. Ramesh (27 March 2012). "Lanco issue with Ministry of Corporate Affairs". The Hindu.quote: Lanco has misled the Government on the question of ownership of projects and has won several projects using an opaque ownership structure when the rule says that a developer can secure only one project.
  12. Rohit Parihar (17 March 2012). "Congress Gets Burned by the Sun: Rajasthan govt issue fraud certificates to Cong MP for solar projects". India Today.
  13. "Rs 13k cr scam in national solar plan, claims CSE". Times of India. 2 February 2012.Quote: In violation of norms laid down by the government, a single company, Lanco Infratech has allegedly cornered 40% of the contracts bid out for the first phase of the National Solar Mission, garnering 235 mw worth projects with assured of Rs 13,000 crore over the next 25 years.
  14. Lanco seeks additional coal for Anpara C power project in UP - Livemint
  15. "Lanco Infratech to restructure Rs 7,500 crore debt burden". The Times Of India. 27 July 2013.
  16. Friedman, Thomas L. (6 August 2009). "Lanco Infratech in insurance scam | Deccan Chronicle | 2009-08-06". Deccan Chronicle. Retrieved 7 March 2011.
  17. "Lanco Insurance scam, CM orders probe". Siasat. 28 August 2009. Retrieved 7 March 2011.
  18. "Griffin Coal Mine no longer a subsidiary of Lanco". The Hindi Business Line. 24 December 2017. Retrieved 30 April 2018.
  19. "Seven firms ready to bid for Lanco Infratech". India Times. 24 April 2018. Retrieved 30 April 2018.
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