Lanco Infratech Ltd has said the Griffin coal project in Australia is likely to gain A$150 million (about Rs 870 crore) following revision of fuel supply prices with Bluewaters Power Station.
The Bluewaters power project located near Griffin coal mines was sold to Sumitomo Corporation and Kansai Electric. The Lanco arm in Australia, which is now caught in a legal battle with Perdaman Chemicals, will supply about 1.8 million tonnes of coal for over 25 years to Bluewaters project as per agreement.
“Following the recent sale to the Japanese consortium, the coal supply contract was renegotiated for next 25 years. This will help us gain $150 million, including upfront payment of $50 million,” Nagaprasad Kandimalla, Lanco Infra CEO Business Development, told
Lanco Resources Australia Pty Ltd, the step down subsidiary of Lanco Infratech, had acquired Griffin assets including Carpenter mine for $730 million.
Following the acquisition, Perdaman Chemicals slapped a damages suit claiming Lanco failed to meet its contractual obligations causing loss. The trial of the case in the Perdaman’s claim for damages against Lanco is expected to commence by March next year.
“Lanco is now producing 3.7-3.8 million tonnes a year and expects to increase it to about $5 mt next year. We have filed for necessary clearances and hope to close them soon,” he said.
SALARY ISSUE
Asked to comment on reports of delay in payment of salaries, the Chief Financial Officer of Lanco, T. Adibabu, denied there were any defaults. Liquidity is an issue for most infra companies. The fund flow is expected to get better by January when receivables improve.
Lanco scrip closed at Rs 13.33, up 3.57 per cent on the BSE.
rishikumar.vundi@thehindu.co.in