Infrastructure major Lanco Infratech Ltd. said on Wednesday that it had sold a 1,200 MW thermal power plant in Karnataka to Adani Power for about Rs. 6,000 crore in a move to cut its debt.
"For Lanco Infratech, this transaction will support the company in reducing its debt and will enable Lanco to receive about Rs. 2,000 crore as cash and additionally, Adani Power will take Udupi Power's long-time debt of around Rs. 4,000 crore," Lanco said in a statement Wednesday.
According to Lanco Infratech, the Udupi plant is the "first independent power project in the country based on 100% import coal with a captive jetty of four million tonnes per annum and an external coal handling system in the new Mangalore Port Trust".
"The capacity can be, if required, expanded to handle another four million tonne capacity," it added.
Lanco's Udupi power plant has already signed with the Karnataka government for further expansion of 1,320 MW, the statement said. While 90%of the electricity generated from the plant is supplied to Karnataka, the remaining goes to Punjab. Currently, Adani Power has an installed generation capacity of about 8,580 MW.