India's Lanco eyes $2-B Chinese loans for 2,640MW projects

$2 billion for new power projects.

India's Lanco Infratech hopes to raise this through loans from Chinese banks and financial institutions.

The proceeds will be used on two power projects in India's nothern state of Uttar Pradesh.

China Development Bank will lend $600 million, Lanco Infratech announced.

Chinese bank lending to Indian power companies is usually tied to the purchase of equipment from Chinese manufacturers.

Lanco Chairman L. Madhusudhan Rao said that the loan is a startegy to address liquidity concerns due to delay in receivables from utilities.

The two power projects will have a combined capacity of 2,640 mega watts, said a Lanco official.

The fundraising is expected to be completed by the end of the year, the Lanco official added.

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