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Rao’s Lanco Plans to Borrow $5.6 Billion to Add Power Plants

Lanco Infratech Ltd., an Indian electricity producer controlled by billionaire L. Madhusudhan Rao, plans to borrow about $5.6 billion to expand power generation about fourfold in four years.

The company aims to raise as much as $2.2 billion of debt overseas and will borrow the remainder from local banks in the next 15 months, Chairman Rao said in an interview. Lanco will spend $1.4 billion of its own cash as it builds plants to generate an additional 6,000 megawatts by March 2015, he said.