Lanco Infratech Ltd has declared the first unit of 371 MW of third phase of Lanco Kondapalli Power Ltd near Vijayawada as commercially ready for operation.

The diversified infrastructure company, which is faced with stranded projects due to inadequate gas supply from Krishna-Godavari Basin, is pinning hopes on the Central Government move to supply pooled gas to keep the stranded gas projects going.

P. Panduranga Rao, Chief Executive Officer of Lanco Power Division, told Business Line, “Though the project could have been completed much ahead, the date of commissioning has been delayed as there was no gas. Now with the Power Ministry making arrangements for supply of pooled gas, we have declared the project as commercially ready.”

“This entitles us to secure gas supply and run the project although at a lower capacity,” he explained.

The company had taken up the Lanco Kondapalli project over three phases. While the phase one of 368 MW and phase two unit of 366 MW are operational, this unit one of phase three would enhance the capacity by another 371 MW, but is expected to run at lower plant load factor due to lower supply of gas over the next four months.

“We have another unit of 371 MW which could be made ready,” he said.

The gas supply to the grid would be made at Rs 4.70 per unit. The Government pitch in with a support of Rs 1.42 per unit. The first two units are also functioning at lower capacities due to lack of adequate gas supplies.

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