Griffin buy just the beginning, says Lanco Infratech

After buying Griffin Coal Mining Co of Australia, Lanco Infratech has set sights on a significant mining play.

“We are looking at Australia and Indonesia for more mines. Griffin is just the beginning,” a company official said, not wishing to be named.

Lanco is in the process of setting up capacities to generate 15,000 mw of power by 2015 and most of the mine acquisitions are said to be with an objective of having a captive coal supply facility.

“The Australian mines (of Griffin) will initially help Lanco do some coal trading. But as our generation capacities become operational, the trading business will reduce and new mines too will have to be bought to supply coal for the group’s power generation business,” the official said.

Of the new capacities that are being worked out by Lanco, about 80-85% are thermal. The company would need to import about 20 million tonnes of coal annually and the plan to acquire more mines is aimed at significantly reducing imports.

If all goes well, the company will stop depending on imports.
Lanco has already put in place the equipment supplies for the proposed capacities from Chinese manufacturers.

The company currently has a capacity to generate about 2,100 mw and plans to increase the capacity to about 3,400 mw by March-end.

Meanwhile, Lanco has been awarded a Rs4,100 crore EPC contract by a subsidiary of Moser Baer Projects Pvt Ltd for execution of a coal-based 2 x 600 mw power project through international competitive bidding.

The scope of work includes complete main plant and BOP package including civil and structural works on engineering, procurement and construction basis.

Lanco has already received its notice to proceed and a dedicated project team is already in place.

Significant work has already been done. This is the first contract for full scope EPC works including the main plant for an external client, Lanco said in a statement.

“This is an important milestone for Lanco Infratech. It may be recalled that in July this year we bagged a contract from Mahagenco for its 3 x 660 mw Koradi project (near Nagpur) for a BOP package,” SC Manocha of Lanco’s EPC division said.

“We have been looking at expanding capabilities to take contracts from external clients and the Moser Baer order will strengthen our foothold in the space and at the same time we remain committed with the core competence of Lanco which is deputing experienced team for managing contracts during all phases of a project, while meeting the highest international standards,” Manocha said.