Media Release
Hyderabad
8 July 2007

Hyderabad: The 500 MW (4x125) Teesta VI Hydro Power Project being developed by LANCO Energy Pvt Ltd in Sikkim has achieved financial closure. The project, estimated to cost Rs 3,000 crore, would be financed with a debt of Rs 2,400 crore and an equity of Rs 600 crore. A consortium of nine banks and financial institutions with ICICI Bank in the lead are providing the debt required for the project. LANCO Infratech Ltd (LITL) will have a 74% stake in the project with the Government of Sikkim holding the remaining 26%.

The construction and EPC contract amounting to Rs 2,340 crore for the project has been awarded to LITL. With this contract, the construction and EPC order book of LITL currently stands at more than Rs 7,500 core.

Reacting to the development LANCO Group Chairman L Madhusudhan Rao says, “This is the biggest hydro power project being developed by LANCO Group. The achievement of financial closure marks a major milestone of the project.”

LANCO Group is one of the fastest growing corporate entities in India. LANCO has more than two decades of experience operating in the core sectors of Power Generation, Power Trading, Realty, Engineering and Construction, Information Technology and Manufacturing. At present, the power portfolio includes an operating capacity of 518 MW and additional capacities under construction aggregating to more than 3,200 MW.  The Construction and EPC division of the company is executing various orders worth more than Rs 7,500 crore.  LANCO is also developing one of the largest integrated township properties in Hyderabad which will have a developed area of more than 30 million square feet and will also have one of the tallest residential towers in the world. The development of the property is estimated to cost Rs 5,500 crore.