After prolonged litigation and arbitration proceedings, Lanco Infratech will be entering into a fresh agreement with the Madhya Pradesh government for supply of the entire 300 Mw power from its Korba power plant in Chattisgarh. The state has agreed to waive the rate ceiling for power to be supplied from the plant, after the two sides reached a settlement through arbitration.

The company had commissioned the plant two years before at a cost of Rs 1,350 crore and was forced to sell it to Punjab in a short-term contract after it found the Rs 2.25 a unit ceiling on power rate was unviable.