Chennai firm plans new project’s financial closure by May

February 25th, 2009 - 10:03 pm ICT by IANS  

Chennai, Feb 25 (IANS) The city-based Coastal Energen, the Indian arm of Coal and Oil group of Dubai that is promoting a Rs.45-billion (Rs.4,500-crore) thermal power plant in Tuticorin, hopes to achieve financial closure within two months, said a top company official Wednesday.
“We are talking with an 18-bank consortium led by State Bank of India. The debt component will be around Rs.3,450 crore (Rs.34.50 billion),” president and chief executive of the Coal and Oil group Ahmed A.R. Buhari told reporters here.

A 70:30 joint venture between the Coal and Oil and another Dubai industrial house - the AW Al Rostamani group, Coastal Energen has signed a power purchase agreement with the power trading wing of Tata Power.

The 1,200 MW project is promoted under the Tamil Nadu’s merchant power policy.

“The Tata company will buy around 700 MW. We will have to find other buyers and also supply to Tamil Nadu Electricity Board,” Buhari added.

According to him, the company will be selling power upwards of Rs.3 per unit.

Coastal Energen will source the boiler turbine generator (BTG) from Chinese power equipment manufacturer Harbin Power for around $450 million.

“We will shortly tender out for the balance of plant (BOP) - all other equipment other than BTG,” Buhari added.

The project will come up over 1,000 acres and Coastal Energen has obtained almost all the regulatory clearances, he said.

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