Lanco Infratech Ltd has resolved issues with Uttar Pradesh utilities and has received more than Rs 400 crore of its pending receivables.
“In fact, the company has already received more than Rs 400 crore and we are hopeful the remaining amount of about Rs 150 crore will also come through as we have been assured payment,” said T. Adibabu, Chief Operating Officer, Finance.
The diversified infrastructure company has piled up receivables of over Rs 3,300 crore from various utilities including Uttar Pradesh, Karnataka and other States entities as of December last year.
With the recent payments, it has come down to about Rs 2,950 crore and the company hopes this will come down further as some other utilities are close to finalising payments.
“We had decided not to supply power due to stalemate relating to payments for the power supplies made. After assurance and payments were made, the 1,200 MW thermal power project is functioning at full capacity. We have also requested for higher rates due to difficulties faced. This is being looked into by the electricity regulatory commission,” he told Business Line .
“Similarly, we are in the process of settlement for Udipi project supplies in Karnataka. They owe us more than 1,500 crore. We expect even this to be resolved. The matter is at advanced stage of finalisation and likely to be resolved soon,” he explained.
In Karnataka, the appellate authority had ruled in Lanco’s favour.
In a market where the liquidity is tough and funds are hard to come by, a power generation company, which has to meet several payment obligations, high fuel and generation costs, cannot afford any delays in repayment of dues, he said.
rishikumar.vundi@thehindu.co.in