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M. Ramesh

Chennai, June 30 Infrastructure Leasing and Financial Services Ltd (IL&FS), one of the country’s larger infrastructure developers, plans to put up a 4,000 MW coal-based power plant in Tamil Nadu. The project would most probably come up at Cuddalore, sources in Tamil Nadu Government confirmed to Business Line on Saturday. The project could cost anywhere between Rs 16,000 crore and Rs 20,000 crore, it is learnt.

It is understood that the plant would run almost entirely on coal imported from Indonesia. The IL&FS project is one the largest among the clutch of ‘merchant power projects’ that the Tamil Nadu Government wants the industry to set up merchant power projects in the State. Merchant power projects are those that sell power to the buyer offering the best price, as opposed to selling to a committed, long term, buyer for a fixed tariff.

For example, the proposed ‘ultra mega power projects’ would sell electricity at a fixed tariff.

Recently, in an informal chat with Business Line, the Tamil Nadu Power Minister, Mr Arcot Veeraswamy, had said that the Government would like to see 10,000 MW worth of merchant power plants set up in the State. In addition, the Gove rnment wants another 10,000 MW of ‘MoU route’ power projects, where the state electricity board would buy the power.

It is understood that eight companies have expressed interest in putting up the merchant power plants, including IL&FS. Among those who have expressed interest are GEA Energy Systems, jewellers Kirtilal Kalidas & Co and the Chennai-based Surana group.

More Stories on : Outlook | Power | Infrastructure | Tamil Nadu

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