Reports indicate that Mumbai Port Trust is taking steps to auction boiler, turbine and generator (BTG) imported from China or Singapore by Lanco Infratech for its 1,320 mw Wardha power project in Maharashtra.
It may be noted that the company had neither paid custom duty nor port charges towards the imported items for past many months, which had forced the port to take steps to auction them.
By September 2012, the Wardha project was slated to be commissioned and experts said with the equipment still at the port the commissioning date seemed uncertain.
The port recently invited bids for auction of the unclaimed cargo to recover its dues. The goods consist of 12 lots of BTG plant and equipment, including ESP and its auxillaries. The tender document will be available for sale from February 20 and offers can be submitted from March 4 to March 13, according to the notice.
The Lanco plant is coming up at Mandava in Wardha and Lanco has signed a Power Purchase agreement (PPA) of Rs 2.70 per unit for it with Maharashtra State Electricity Distribution Corporation (MSEDCL).
Lanco’s market cap has declined 69% in the last two years on account of rising debt and interest costs, large number of ongoing infra projects, pending recovery of over Rs 4,000 crore dues from state discoms.
As per closing price of February 23, Lanco market cap stood at Rs 2,788 crore against Rs 9,126 crore two years ago.