They were bitter rivals in the past, but now new considerations which is now all set to become mutually beneficial with the TRS government in Telangana all set to purchase power from the Lanco Group, which is owned by the family of former Congress MP from Vijayawada, Lagadapati Rajagopal.
With Telangana in the grip of a major power shortage, sources say that the Lanco power project which is lying idle for the last two years due to lack of gas from the Krishna-Godavari Basin is also set to benefit from this deal.
While Telangana would receive 300 mw of power at around Rs 7-8 per unit, Lanco would also become operational after lying idle for two years. Lanco Infratech and the Telangana government have reportedly entered into a formal agreement where company's power plant near Vijayawada would produce 300 MW power.
This is with the gas procured by swapping method wherein the Gas Authority of India (GAIL) will be supplying gas from the KG Basin to Lanco. In return the Telangana government would buy gas and give it to the company GAIL at the Gujarat ports according to a gas supply formula which has been decided by the Centre.
