Lanco Infratech tanks as CIL’s arm discontinues coal supply to its power unit

14 Jun 2012

Lanco Infratech is currently trading at Rs. 13.53, down by 0.27 points or 1.96% from its previous closing of Rs. 13.80 on the BSE.

The scrip opened at Rs. 13.80 and has touched a high and low of Rs. 13.90 and Rs. 13.35 respectively. So far 2451183 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 31.05 on 15-Jun-2011 and a 52 week low of Rs. 8.50 on 19-Dec-2011.

Last one week high and low of the scrip stood at Rs. 14.55 and Rs. 12.90 respectively. The current market cap of the company is Rs. 3267.39 crore.

The promoters holding in the company stood at 72.22% while Institutions and Non-Institutions held 10.70% and 17.08% respectively.

In a major roadblock to Lanco Power, Coal India’s subsidiary- South Eastern Coalfields (SECL), has reportedly discontinued coal supply to Unit-2 of former’s Amarkantak power project in Chhattisgarh, in terms of company’s non-abidance of coal ministry’s directive of inking long-term power purchase agreement (PPAs) with any state distribution company (discom).

Conversely, the company has signed a PPA with PTC India, Government of India initiated Public-Private Partnership and Chhattisgarh Power Trading Company for supplying 65% and 35% of power generated from Unit-2 of the project.

As per the guidelines floated by the coal ministry all the power producers are required to ink long-term PPAs with discoms to be eligible for coal supply at notified prices, which are at least 20% cheaper than the floor price of coal provided by CIL in e-auction.

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