Lanco sees Sasan decision going its way

NEW DELHI: Lanco Infratech and its partners Jindal Steel and Power are likely to use Globeleq Singapore as a vehicle for the Sasan ultramega power project. The two had recently taken over the company after Globeleq Ltd decided to sell its Singapore arm.

Globeleq-Lanco Infratech consortium had bagged the fist ultramega power project at Sasan, after quoting the lowest Rs 1.19 a unit tariff. When asked whether Globeleq Singapore could be used for overseas business, Lanco chairman Madhusudan Rao told DNA Money there were no plans as yet to use Globeleq Singapore for any other purpose.

On being asked whether the Globeleq Singapore sale was more of a negotiated deal, he replied in positive and added that its shareholders were keen that the Sasan process was not affected. “It was a smooth transition and now the two shareholders will together decide the business plan for it (Globeleq Singapore),” he said.

According to Rao, before their group company Prince Stone and the Jindals took over Globeleq Singapore, the company did not have any operating assets and any other project in hand. “The only project it had was Sasan,” said Rao.

He said Globeleq Singapore’s business was restructured to transfer the assets to its sister concerns. In the event of the consortium being denied the project, there may be no role for the Globeleq Singapore, but Rao appeared very positive about hearing favourable news from the ministry of power on Sasan.