Griffin to sign revised fuel pact with Bluewaters Power: Lanco
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Diversified group Lanco Infratech today said it has won a ruling from an Australian court that allows its subsidiary Griffin Coal to revise coal supply pact with Bluewaters Power Station.
The Supreme Court of Western Australia has rejected the plea from Perdaman Chemicals and Fertilisers Pty Ltd (PCFL) on the issue, according to Lanco.
PCFL is locked in a AUD 3.5 billion litigation with Lanco over fuel supplies from Griffin Coal.
Lanco had acquired Griffin Coal for about AUD 720 million in February last year.
"The Honourable Supreme Court of Western Australia in its judgement has allowed the Griffin Coal Mining Company Pty Ltd (GCMC), a subsidiary of Lanco Infratech to enter into revised Coal Supply Agreement (CSA) with the Griffin Power entities...," Lanco said in a statement.
Following the development, shares of Lanco surged 6.30 per cent to Rs 13.32, in morning trade, on the BSE.
Griffin Power entities (Bluewaters) are in the process of being acquired by Japanese consortium of Sumitomo Corp and Kansai Electric Power Co.
"This (ruling) is a milestone for Lanco. Griffin is coming to a good shape... We will be getting more revenues once the revised CSA is in place," Lanco CEO (Business Development) Nagaprasad Kandimalla told PTI.
According to Kandimalla, the revised pact is expected to be signed by the middle of January 2013.
Griffin Coal has a long-term fuel supply agreement with Bluewaters Power Station.
"The revised CSA will result in a gain of approximately AUD 150 million in NPV terms, including a substantial upfront payment to Griffin Coal Mining Company Pty Ltd," Lanco Infratech Chairman L Madhusudhan Rao said.
A Japanese consortium of Sumitomo Corp and Kansai Electric Power Co are to acquire Bluewaters plants.