Indian state-run power companies close to buying Lanco asset for $365 million

Four state-run power companies are close to buying a 1,980 MW stranded power plant from Lanco Infratech for Rs 30.2 billion ($364.84 million), outbidding Adani Group and Reliance Industries Limited.

The state companies include Power Finance Corporation (PFC) Limited, REC Limited, SJVN Limited and Damodar Valley Corporation (DVC). These companies aim to acquire the coal-fired power plant of Lanco Amarkantak in Chhattisgarh. If the deal goes ahead, SJVN will be the majority shareholder in Lanco Amarkantak with 40 per cent stake, while DVC will own a 10 per cent, and PFC and REC would continue to hold 25 per cent each. PFC and REC are separately also working on setting up a project management subsidiary that will bid for stressed power assets with support from power developers like NTPC Limited, SJVN and DVC.