Lanco Infratech has decided to move out of real estate sector to focus on the core area of power generation, besides taking up engineering, construction and procurement contracts, and orders for roads, highways and ports. Company’s managing director G Venkatesh Babu told Financial Chronicle on Sunday that the firm will, however, complete the two luxury housing projects in Hyderabad and Chennai.“We have decided not to take up new realty projects going forward, as we have realised that there are too many players in the sector,” Babu said. He said the ever rising power shortage in the country and comparatively lesser number of players makes this sector lucrative.http://www.maaproperties.com/Pages/ModuleContent.aspx?Module=News&nid=1088
Lanco is developing a Rs 5,500 crore project — Lanco Hills — spread over 100 acres in Hyderabad. The project includes 15 residential towers, special economic zones and various commercial properties.The firm has also planned development of Lanco Horizon Properties at Chennai. The township is planned over 80 acres.Last year, the company had lost about 250 customers of its residential apartments in Hyderabad during the market meltdown. The customers, mostly expatriates, cancelled bookings after paying 40 per cent of the sum required for construction of the apartments.Each flat in the project costs around Rs 1.5 crore. Following the withdrawal, the company slowed down the project.
Babu said at present the company has a power generation capacity of 950 mw. This includes the 368-mw Kondapalli project in Andhra Pradesh, 120-mw Aban project and a 300-mw facility at Amarkantak in Chhattisgarh.The company expects to increase the capacity to 4,000 mw in two years. The company also plans to go alone in bidding for upcoming ultra mega power projects. It had bid for the last UMPP at Tilaiya with Malaysia’s Genting. They later withdrew the bid.
