UPDATE 1-India's HCC posts 3Q net loss on provisions

* Earnings hit by interest costs, delays in execution, payment

* Provisions 1.66 billion rupees for future losses

* Has order backlog of 162.40 billion rupees

MUMBAI, Jan 20 (Reuters) - India's Hindustan Construction Co (HCC) posted its second successive quarterly loss in the Dec. quarter, impacted by provisions made for expected losses, rising interest costs and delays in execution.

The company, which builds roads, bridges and power projects, posted a net loss of 1.30 billion rupees ($25.87 million), compared with a profit of 79.4 million rupees a year ago.

It had posted a net loss of 405.4 million rupees in July-Sept.

The company has made a provision of 1.66 billion rupees as exceptional items for "future losses" in two projects, cost revision in certain projects and expected loss on sale of assets.

HCC, which had to stop work at its ambitious hill city Lavasa project near Pune in western India, has resumed construction work at the site, it said.

Lavasa, which is constructing a $31 billion township in India's western hills, was ordered to stop construction due to government wrangling over green laws. The delay cost HCC $400,000 a day and forced the company to abandon plans IPO plans for the project.

"The revenue growth was lower due to slow order booking during the last four quarters, execution bottlenecks, rising interest cost and payment delays by clients," Ajit Gulabchand, chairman and managing director said in a statement on Friday.

"The company has not been winning major orders during the last couple of quarters, mainly due to the difficult business environment," Shailesh Kanani, sector analyst at Angel Broking said.

HCC has an order backlog of 162.40 billion rupees.

HCC has provisioned 270 million rupees against a performance bank guarantee, which the company termed as "wrongfully" encashed by a client. It is disputing the claim and has made provisions as the arbitration proceeding may be prolonged, the statement said.

HCC will revamp the financial structure of its arm Lavasa Corp and decide on reviving plans for an initial public offering after the unit won environmental clearance to resume construction.

Shares in the company, which fell 47.45 percent over the past one year, closed down 2.54 percent at 21.10 rupees in strong Mumbai market. ($1 = 50.2550 Indian rupees) (Reporting by Rajesh Kurup; Editing by Subhadip Sircar)