Indian power generation company Lanco Infratech plans to sell 3,000 MW of power capacity to reduce its debt. The company just completed the sale of its 1,200 MW Udupi coal-fired power plant to Adani Power for Rs 6,000 crore (about US$990m); the plant has already signed with the Karnataka Government for further expansion of 1,320 MW. This transaction will enable Lanco to receive about Rs 2,000 crore (US$330m) as cash and additionally, Adani Power will take Udupi Power’s long-time debt of around Rs 4,000 crore (US$660m). The additional sale of at least 3 GW should raise Rs 5,000 crore (about US$820m) in cash and cut Rs 15,000 crore in debt (US$2.5bn). The group has 3.6 GW of power plants in operation, 4.6 GW under construction and nearly 9 GW under development. The company borrowed heavily to finance a rapid expansion but is currently facing troubles related to the economic slowdown in India and fuel shortages stalling power projects.
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