Lanco Babandh Power Ltd

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Lanco Babandh Power Pvt. Ltd (LBPPL) was created to develop initially develop 2640 MW (4X660 MW) thermal (coal) power station near village Khurunti, District Dhenkanal, Orissa. The project was to be developed in two phases: phase I had 1320 MW (660x2) and phase II another 1320 MW (660MWx2). The project is located in an area measuring 2100 acres. The site is less than one km from NH42 (Angul - Dhenkanal), 25 km away from Talcher Railway Station on the East Coast Railway and 130 km from Bhubaneswar airport. Coal for the project shall be sourced from Talcher coal field and water shall be sourced within 500 mtr from river Brahmani. Lanco Babandh Power Pvt. Ltd (LBPPL) was a subsidiary of Lanco Group which signed a Memorandum of understanding (MOU) with Government of Orissa to set up a power station in 2006. Between April and June 2008, Lanco Babandh entered into an PPA with Orissa, Madhya Pradesh and Haryana for capacities of 1800 MW out of a total capacity of 2640 MW (4x660 MW). The project cost of phase I (1320 MW) was estimated INR 69.3 billion (US$ 1,515 million). Lanco Babandh Power Ltd achieved financial closure on 09 July 2010. The project was financed with a debt of 5,544 crores by a consortium of 14 banks and financial institutions with ICICI Bank in the lead and the balance of 1,386 crores as equity. The plant would have state-of-theart technology with advanced technology boilers, which will be one of the largest in Orissa. The company will source coal from Talcher coalfield and water from river Brahmani. Unit-I of the power project was expected to be commissioned by September 2013 and unit-II by January 2014.