Lanco Infratech eyes Rs 25,000 crore by selling assets

Lanco Infratech said it may sell power projects having capacity of 3,000 MW from 2018 onwards and expects to get Rs 25,000 crore, which would help pare debt and also infuse fresh capital into the group.

L Madhusudhan Rao, Executive Chairman, Lanco also said the current power portfolio of the group is expected to touch 8,000 MW by 2018 from the current 3,400 MW.

Lanco had Rs 33,000 crore debt as on March 31.

"In FY16 we are not selling any projects. Most of the asset sale will happen from FY18 onwards. Our target is, we will sell definitely 3,000 MW from this 8,000 MW basket. But which asset we will sell and all, we will choose based on the value and potential price," Rao told reporters on the sidelines of company's Annual General Meeting held in Hyderabad.

He said most of the issues related to the power sector are expected to be settled by then.

"Enterprise value of 3,000 MW may come close to Rs 25,000 crore," he added.

Replying to a query on the reason for not putting up any assets for sale until 2018, Rao said discoms health, which is currently under stress is expected to revive by then with some of the reforms being undertaken by the government.

Lanco recently concluded the sale of its Udupi Power plant to Adani for Rs 6,300 crore. The transaction is considered as one of the largest takeovers in the country's thermal power space.