|This article is part of the CoalSwarm coverage of India and coal.|
Lanco Infratech, which is most commonly referred to as Lanco, is a privately owned Indian-headquartered power generation and infrastructure company. On its website the company states that it "is fast emerging as one of the top three private sector power developers in India with 2,092 megawatt (MW) under operation, 7,153 MW under construction, and 11,070 MW of projects under development."
Coal-fired power stations
On its website Lanco lists its current coal-fired power stations as:
- Udupi power station is an existing 1200 megawatt power station based on imported coal. The plant is in Udupi District of Karnataka State in the Coastal Region of India. The first generating unit was commissioned in November 2010 and the second unit in April 2011.
- Amarkantak Thermal Power Project is an existing 600 megawatt coal fired plant near Pathadi Village on Korba-Champa State Highway in Chhattisgarh. The plant comprises two 300 megawatt generating units. In addition, Lanco are currently constructing a further two 660MW units.
- Anpara thermal power station is a 1200 megawatt coal-fired power station comprising two subcritical units of 600 MW each. The plant is located near Anpara in Uttar Pradesh. As of July 2011, the plant is currently being commissioned.
- Vidarbha thermal power station is a proposed 1320 megawatt power station comprising two subcritical units of 660 MW each. The proposed plant site is near Mandva, Wardha District, Maharastra.
- Babandh power station is a proposed 1320 megawatt coal-fired power station comprising two subcritical units of 660 MW each located in Dhenkanal District, Orissa.
Lanco is also proposing to build the Bhognipur power station at The proposed power station has been referred to as being a 1,320 MW in some reports and one Lanco affiliate's website. In a later report it has been referred to as a 2,640 megawatt plant.
West Australian coal mines
In March 2011 Lanco bought the Griffin Coal Mining Co. Pty Ltd’s coal mines in Western Australia for A$750 million. The report stated that "Lanco plans to boost almost four-fold to over 15 million tonnes per annum, in addition to adding rail linkages, and expanding facilities at Bunbury port." The coal, aside from that produced domestically, would be exported to feed Lanco's proposed major increase in coal-fired power plants it owns and operates in India. A year later company's chief operating officer, Manoj Agarwal, stated that while the company had anticipated the effects of the mineral resources rent tax and the carbon tax "we have had two hits, one is inflation, the other is the Australian dollar. This is something we feel we should have done a little more analysis on this issue. Australia has now become a very high-cost country."
Following the purchase Lanco have sought a series of financial favours from the West Australian government -- all of which have been rejected. It sought a waiver of its debts with Fremantle Ports in February and a reduction in port handling fees of 75%. The company also sought royalty relief on its Collie mine.
In May 2012 Fremantle Ports warned Lanco that unless it paid outstanding debts it wold be blocked from exporting coal. "We have written to Lanco to advise them that Fremantle Port expects them to meet the commercial conditions under their contract," a spokeswoman for Fremantle Ports told The West Australian. The newspaper reported that it believed the outstanding amount was $8.5 million which debt "incurred as part of work commissioned on Lanco's behalf by Fremantle Port that allows Lanco to export more than a million tonnes of coal through Kwinana." The Wall Street Journal reported that Lanco had agreements to export "around 750,000 metric tons of coal a year" through Fremantle Port's Kwinana Bulk Terminal. Several days after the warning Lloyds List reported that Fremantle Ports’ manager for external affairs Ainslie de Vos stated that "arrangements have been made between the parties for payment of all outstanding monies."
In March 2013 the Australian Taxation Office (ATO) wrote to Griffin Coal requesting that an outstanding tax debt of $13.9 million be paid within 21 days or a timetable for payment negotiated. The ATO indicated that if the debt wasn't settled the company could be put into liquidation. In July 2013 the Australian Financial Review reported that after the debt wasn't paid the ATO applied to the Federal Court of Australia to wind the company up “on grounds of insolvency”. “The defendant failed to pay the amount of the debt demanded or to secure or compound for that amount,” the Tax Office submitted.
In a media statement Griffin Coal wrote that "No winding-up order has been issued against Griffin and Griffin remains confident that there is no basis for winding up and that the matter with the ATO will be resolved as soon as possible.” A CFMEU mining district secretary Gary Wood, told the Australian Financial Review that explosives manufacturer Dyno Nobel had stopped supplying the company with explosives after not being paid. “Dyno hasn’t been paid and we can’t drill and blast ... We are five fortnights behind in superannuation payments,” he said. It was also reported that contractors had cute the supply of their services due to not being paid, though John Tombleson, the chief executive at earthmoving and excavation company Piacentini & Son, declined to comment.
Articles and Resources
- ↑ Lanco, "Profile", Lanco website, accessed July 2011.
- ↑ Lanco, "Power", Lanco website, accessed July 2011.
- ↑ Lanco, "Udupi Power Corporation Ltd", Lanco website, accessed July 2011.
- ↑ Lanco, "Amarkantak Power Project", Lanco website, accessed February 2012.
- ↑ Lanco, "Lanco Anpara Power Ltd", Lanco website, accessed July 2011.
- ↑ Lanco, "Lanco Vidarbha Thermal Power Ltd", Lanco website, accessed July 2011.
- ↑ Lanco, "Lanco Babandh Power Ltd ", Lanco website, accessed July 2011.
- ↑ "UP signs MoU with Lanco group to set up power plant", Economic Times, November 5, 2010.
- ↑ Lanco Hills, "Leadership Team", Lanco Hills website, accessed February 2012.
- ↑ "Power plant at Bhognipur in 4 yrs", Times of India, November 30, 2011.
- ↑ "Lanco Infratech seals $760 mn Griffin buy", The Financial Express, March 4, 2011.
- ↑ Ben Doherty, "Strong dollar caught Griffin investor off guard", Sydney Morning Herald, May 8, 2012.
- ↑ 13.0 13.1 Peter Kerr, "Port issues ultimatum to Lanco", The West Australian, May 9, 2012.
- ↑ Stephen Bell, "Fremantle Ports Warns India's Lanco", Wall Street Journal, May 9, 2012.
- ↑ Oliver Probert, "Lanco, Fremantle Ports settle fee dispute", Lloyds List, May 11, 2012.
- ↑ Jonathan Barrett, "Lanco’s Griffin Coal at risk of liquidation in WA", Australian Financial Review, July 4, 2013. (Subscription only)
- ↑ Jonathan Barrett, "Griffin Coal’s Indian owner optimistic about tax debt settlement", Australian Financial Review, July 4, 2013. (Subscription only)
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