The company is developing a 1,320 MW coal-fired power plant in Orissa, based on supercritical technology, which requires specialised boilers.
MUMBAI: Lanco Infratech might just get second-time lucky with supercritical technology. The company is developing a 1,320 MW coal-fired power plant in Orissa, based on supercritical technology, which requires specialised boilers.
It has already placed orders for two supercritical boilers with its strategic partner -Dongfeng Electric of China. In fact, it is sourcing the complete boiler-turbine-generator package from Dongfeng.
The company had signed a memorandum of understanding (MoU) for the 1,320 MW plant with the Orissa government in July 2006.
Lanco’s maiden attempt at setting up a power plant based on the technology came up a cropper when it won and lost the bid for the 4,000 MW Sasan ultra mega power project (UMPP) jointly with UK-based Globeleq late last year.
The project was handed over to Reliance Energy in July this year after Power Finance Corporation, the nodal agency for overseeing the implementation of UMPPs, spotted some financial and technical anomalies in the offer document.
Supercritical technology allows power plants to operate at higher boiler temperatures and pressures, resulting in 38% more thermal efficiency. The technology is more eco-friendly and also helps the company accrue carbon credits.
Suresh Kumar, chief financial officer, Lanco Infratech said, “The Orissa project would entail an investment of approximately Rs 5,000 crore and would be developed over a period of four years.” It is expected to be commissioned by 2011-2012, he said.
The project would require two 660 MW supercritical boilers.
According to Kumar, Lanco could have placed the orders with government-owned Bharat Heavy Electricals Ltd, but for the fact that there would have been a time lag of almost a year compared with Dongfeng. Also, the Chinese company has already mastered supercritical technology through Japanese majors Toshiba and Hitachi.
Lanco Infratech has a capacity of 518 MW at present and would be adding 700 MW this year.
“We have a target of achieving a consolidated power generation capacity of 15,000 MW by 2015. This would translate into a dedicated power asset base of $15 billion,” he said.
Despite the misadventure with the Sasan project, Kumar said, the company was keen on bagging one of the remaining six UMPPs. It has bid for the Krishnapatnam UMPP in Andhra Pradesh and Tilaiya UMPP in Jharkhand and is hopeful of bagging one.
“If we bag one of the ultra mega power projects, it will give a good boost to the company’s target of achieving the 15,000 MW power generation mark, in spite of the fact that the company is quite aggressive with its plans,” he said.
Next calendar, Lanco plans to augment its capacity by 1,200 MW in 2008, 1,200 MW in 2009 and 2,000 MW in 2010.
Kumar said the company was comfortably placed in finances, considering its power projects are executed in an 80:20 debt-equity ratio. “We are looking at 20% returns from every project and in line with our business model, whatever margins we retain to ourselves, we reinvest it in the upcoming projects of the company,” he said.
In terms of value, Lanco’s power asset base is close to $1.3 billion (Rs 5,168 crore) now, while projects worth $4.5 billion (Rs 17,888 crore) are under execution now, said Kumar.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}