Former MP Lagadapati Rajagopal headed Lanco Group is facing financial difficulties. While Lanco Infratech has already initiated bankruptcy proceedings, Lanco Power plant at Kondapalli in Vijayawada is now in debts to the tune of nearly Rs 3000 crore.
Its principal lender Axis Bank has therefore called for a bid for the plant, according to a leading newspaper. Lanco Power established its first plant in 2000, the second one in 2009 and the third one in 2016.
Cumulatively, the plants have the capability of generating round 1400MW of power using gas. But owing to shortage of gas, only one plant is currently functional throwing Lanco Power into a severe crisis.
But what is unfathomable is the company opening a new plant in 2016 despite the unavailability of gas.
The company has until September of this year to clear its dues.