Lanco mulls legal action against AP power distribution cos

Lanco is preparing to take a legal recourse against the power distribution companies (discoms) of Andhra Pradesh for illegally adjusting Rs104.94 crore from the energy bills its subsidiary Lanco Kondapalli Power Ltd (LKPL) was to receive from them.

Four distribution entities led by AP Transmission Corporation (AP Transco) have been for years seeking Rs137.01 crore as liquidated damages on the ground that Lanco Kondapalli had failed to implement its fast track power project of 355 mw as per schedule.

However, the argument of the AP Transo was recently dismissed by the state’s power sector regulator AP Electricity Regulatory Commission saying that petition was barred by time. However, the discoms continued to adjust about Rs62.69 crore from the energy bills to be paid to Lanco Kondapalli in addition to Rs46.25 crore they had earlier adjusted. Further, they also served fresh notices seeking the balance Rs28.07 crore.

“Aggrieved by this act of discoms, LKPL is taking legal recourse for recovery of the above adjustments made by AP Transco,” J Suresh Kumar, Lanco’s CFO, said.