Coastal Energen Pvt Ltd, an arm of the Rs 2,000 crore Dubai-based Coal and Oil (C&O) group, has signed an agreement with the Chinese power equipment major Harbin Power Engineering for sourcing boilers, turbines and generators (BTG) for its 1,200 mega watt thermal power project at Tuticorin in Tamil Nadu. The BTG agreement is valued at $450 million.
The president and CEO of Costal Energen, Ahmed Buhari, said 30 per cent of the Rs 4,500 crore power project cost will come from equity. “The Dubai-based Abdul Wahid Al Rostamani group has agreed to take a 30 per cent stake in the project.”
The project is being set up as a merchant plant and will come on stream by 2011-12.
“As much as 700 mw power will be sold to Tata Power Trading Company, the trading arm of Tata Power for supplies to industries within and outside the state,” Buhari said. “The balance 500 mw will be sold in Tamil Nadu by entering into appropriate tie ups with state authorities.”
As the power project is promoted under the Tamil Nadu government’s merchant power project policy, whereby Coastal Energen can sell the power to any party.
Coal for the project will be imported from Indonesia. “We have the fuel tie up in place, funds for the project have been tied up with the State Bank of India led consortium of banks and the equipment has been ordered,” Buhari said.
C&O is supplying imported coal to various Indian companies including Tata, Reliance Infrastructure, Torrent and others.