The company said that as on June 30, 2015 Lanco has brought in about Rs 670 crore equity and lenders have disbursed Rs 2,260 crore debt to the project.
Lanco Infratech on Monday said it has started discussions with strategic investors to infuse equity in Teesta hydro power project for its speedy completion.
"Lanco, along with the lead lender for Teesta Hydro Electric project, has initiated discussions with strategic investors to infuse equity for the (cost) overrun portion, which will enable speedy completion of the project," Lanco Infratech Ltd said in a BSE filing.
According to the statement, as part of a process to consolidate its businesses and to reduce debt, Lanco Group has undertaken sale of some of its assets and bringing in strategic investors in others.
"The process of bringing the strategic partner on board is taking time. To avoid further delay in the process, the lenders of the project have proposed Strategic Debt Restructuring (SDR), which is in the process of approval.
"In the interest of the project, the Lanco Management is supporting the SDR initiative. The SDR will ensure timely completion of the project which can create value to all the stake holders," it added.
Lanco Infratech Limited's subsidiary Lanco Teesta is setting up the 500 MW Hydro Electric project on river Teesta in Sikkim with initial project cost of about Rs 3,000 crore at a debt equity ratio of 80:20, comprising of Rs 600 crore equity and Rs 2,400 crore debt.
The company said that as on June 30, 2015 Lanco has brought in about Rs 670 crore equity and lenders have disbursed Rs 2,260 crore debt to the project.
Lanco has already brought the full equity as per the original project cost and also brought additional equity towards cost overrun, it added.
The company said that during the course of execution, the project has encountered challenges in terms of adverse geological conditions and severe earth quake. These force majeure issues resulted in cost and time overruns.
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