Lanco Infratech Ltd has struck a deal with UK’s AIM-listed renewable energy firm Greenko to sell three hydro power assets with a combined capacity of 80 MW for an undisclosed amount, as per a stock market disclosure.
Lanco’s arm Lanco Hydro Power Ltd has agreed to sell off its entire holding in 70 MW Lanco Budhil Hydro Power Project in Himachal Pradesh to Tejassarnika Hydro Energies Pvt Ltd, a subsidiary of Greenko Energies, which in turn is the Indian arm of Greenko.
In addition, Lanco has signed a memorandum of understanding to divest two small hydro power plants of 5 MW each located in the Kangra district of Himachal Pradesh to Greenko.
Lanco Infratech has been in the process to divest some of its assets to raise fund and bring down its debt pile. Last month, a consortium of lenders led by IDBI Bank had approved a proposal to restructure its debt worth around Rs 7,700 crore, giving the company a two-year holiday.
Meanwhile, Lanco Infratech announced its fiscal October-December results and posted a net loss of Rs 529.68 crore compared with net loss of Rs 465 crore in the same period previous fiscal.
Greenko is one of India’s largest independent power producers in the renewable energy space. It has a portfolio of wind, run-of-river hydropower, natural gas and biomass assets.
The company is now focused on building new utility scale wind farms and hydropower projects across India. Greenko's goal is to reach 1,000 MW of operational capacity in 2015 and approximately 2,000 MW in 2018.
Last year it raised $150 million from Singapore’s sovereign wealth fund GIC. This deal was through a Mauritius arm which gave GIC the option to convert it into shares of the parent firm listed in London.
Other investors in Greenko as a group include Aloe Private Equity, Standard Chartered Private Equity, GE Energy Financial Services and Capital Group.
(Edited by Joby Puthuparampil Johnson)