Lanco Amarkantak Thermal Power Project
Lanco Amarkantak Thermal Power Project is an existing 600-megawatt (MW) coal fired plant in Chhattisgarh, India, owned and operated by Lanco Infratech.
Two additional units of 660 MW each were under construction at the same location, but were on hold pending National Company Law Tribunal (NCLT) insolvency proceedings and presumed cancelled.
According to the Broad Status Report as of October 2016, "Presently no work is going at the site due to financial problems." The report also noted that land acquisition of land for water system was delayed, and that the schedule of implementation would be reassessed once work resumed.
In September 2019, the National Company Law Tribunal (NCLT) allowed Axis Bank to start bankruptcy proceedings against Lanco Amarkantak Power after it defaulted on loans. The company owed banks almost Rs 12,000 crore. Attempts to resolve the default under previous schemes such as corporate debt restructuring failed. The tribunal had ordered liquidation of Lanco group parent, Lanco Infratech, last year after banks failed to agree on a resolution plan for the company during its insolvency proceedings. The parent company alone owed banks in excess of Rs 45,000 crore.
In 2021, government documents noted the following about the project: "Admitted to NCLT on 05.09.2019; Resolution Plan being considered."
In December 2021, lenders selected Vedanta's offer of ₹2,800 crore for a financially-stressed Lanco power unit, to put to a vote after its offer was declared higher than that of rival bidder iLabs Group. Vedanta and iLabs Group were the only two bidders.
However, in January 2022, lenders rejected Vedanta's offer for Lanco. Lenders were reportedly evaluating options including inviting fresh bids. They felt the valuation offered by Vedanta was low considering the company owned other plants.
Lanco Amarkantak Power Ltd's Corporate Insolvency Resolution Process website detailed the status of units 3 & 4.
In February and March 2022, it was reported that Reliance Industries was planning to make a foray into coal-based power generation by submitting an application to acquire bankrupt Lanco’s Amarkantak unit. RIL had earlier made an announcement to get into the renewable power generation business by investing $10 billion in three years but its bid for a coal-based power plant was considered as deviation from its green energy policy.
China Development Bank gave US$200 million Buyers’ Credit for units 3 & 4 (1320 MW) of Lanco Amarkantak Thermal Power Project, the 1320 MW Babandh power station, and the 1320 MW Vidarbha thermal power station being developed by Lanco Group.
The Forest Peoples Programme review on the Lanco Amarkantrak power plant revealed that since 2008, there was no evidence of “genuine broad community support for the project.” Protests and petitions occurred against the LAPPL over employment provisions.
In October 2011, protests from the local villagers occurred against the Lanco Amarkantak power plant because they believe the company in charge, LAPPL, has shown indifference to environmental concerns. A hearing over the power plant was cancelled as a result of these protests. LAPPL has refuted these claims, stating that it was defamation.
In January 7, 2012, violent protests erupted at the public hearing held for the expansion of the Lanco Amarkantak power plant by the Lanco Amarkantak Power Private Limited (LAPPL) company in the town of Korba. The protestors had pelted stones and tried to get into the hearing. The police prevented them and dispersed villagers with lathi-charge and lobbed tear gas shells.
- Unit 1 - 300 MW - 2009
- Unit 2 - 300 MW - 2010
- Unit 3 - 660 MW
- Unit 4 - 660 MW
Project Details for Stage II Expansion
Location: Pathadi village, Korba district, Chhattisgarh
Coordinates: 22.2420932, 82.7247334 (exact)
Status: Cancelled (Construction on hold)
Capacity: 1320 MW (Units 3-4: 660 MW)
Projected in service: 2017-2018
Estimated annual CO2: 7,806,085 tons
Source of financing: China Development Bank
Permits: Environmental Clearance extension for unit 4, India MoEF, June 22, 2015
Korba 495 674 Chhattisgarh, India
Phone No. +91-7759-279 938/ 915
Articles and Resources
- Planet slider comparison February - March 2018, retrieved May 2, 2018
- Lanco, "Amarkantak Power Project", Lanco website, accessed February 2012
- MONTHLY REPORT ON BROAD STATUS OF THERMAL POWER PROJECTS IN THE COUNTRY, Ministry of Power, February 2012
- Lanco Amarkantak (Pathadi) Coal Power Plant India, Global Energy Observatory, accessed December 2011
- "Lanco Amarkantak Thermal Power Station: Summary of Proposed Investment," International Finance Corporation website, accessed February 2012
- "Lanco Amarkantak Power Ltd,", Lanco website, accessed September 2015
- "Coal-Fired Plants Financed by International Public Investment Institutions Since 1994", Appendix to Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense, April 2009
- "Monthly Report on Broad Status of Thermal Power Projects in the Country," India CEA, November 2015
- "Monthly Report on Broad Status of Thermal Power Projects in the Country," India CEA, July 2016
- "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, October 2016
- "NCLT okays start of Lanco Amarkantak bankruptcy process," The Economic Times, September 14, 2019
- “Broad Status Report,” Thermal Project Monitoring Division , Central Electricity Authority, November 2021
- "Lenders to vote on Vedanta's ₹2,800 crore offer for Lanco unit," The Economic Times, December 24, 2021
- "Lenders reject Rs 2,800-crore Vedanta offer for Lanco unit," The Economic Times, January 12, 2022
- "Corporate Insolvency Resolution Process of LAPL," Lanco Amarkantak Power Ltd, accessed January 2022
- "RIL, Adani Power, BPCL, Oil India, Glaxosmithkline Pharma, Voltas, Yasho Industries stocks in focus," Financial Express, March 17, 2022
- "Lanco Infratech to raise US$2 billion from Chinese banks and FIs for power projects," Lanco press release, Nov 26, 2012
- “Sustainable development or business as usual?”, Forest Peoples Programme, September 2008.
- “Power project’s expansion plan hits green hurdle”, Hindustan Times, October 31, 2011.
- “Chhattisgarh: Violence and chaos at Lanco’s expansion plan meet”, Hindustan Times, January 7, 2012.
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