Lanco Infratech Ltd expects to conclude a corporate debt restructure process for its holding company before December, while it continues to look at opportunities for stake sale.

L. Madhusudhan Rao, Chairman, said the restructuring process is now on for the standalone company and the primary objective is to assist the company to concentrate on operations during the restructuring period and return to normal level.

The diversified infrastructure company is at advanced stage of negotiations with a consortium of about 25 banks lead by IDBI to rejig its Rs 7,000 crore debt, which includes Rs 4,000 crore debt of the holding company. The company has a total debt of Rs 34,000 crore, including that of various special purpose vehicles.

Addressing shareholders at the company’s 20{+t}{+h} AGM, he said the company’s plans to raise long term capital for infusion into the business were also affected because of investor apathy towards infrastructure sector both as private equity and primary market investors.

During the meeting, he told the members that slowing public spending and capital expenditure combined with weakening private consumption are likely to impact GDP growth.

The financial restructure of SEBs, signing of new fuel supply agreements and new standard bidding documents augur well for the sector.

With most States hiking tariffs, situation is likely to get better, he said.

Referring to the company’s installed capacity of 4,732 MW and 4,636 MW under construction, he said the focus now is on fixing fuel and tariff concerns, but the project implementation would be possible in the next financial year. Various issues regarding fuel supply and tariffs would be sorted out within few months.

> rishikumar.vundi@thehindu.co.in

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