The Hindu Business Line : East Coast Energy to establish 4,000 MW plant in AP

Hyderabad, Aug 7 East Coast Energy has sewn up plans to establish a 4,000-MW capacity mega power plant along with a dedicated jetty to evacuate coal near Bhavanapadu in Srikakulam district of Andhra Pradesh.

East Coast Energy is a special purpose vehicle of Asian Infra, Singapore and Athena Energy Ventures comprising IDFC, PTC and other strategic investors.

The phase I of the project contemplates the setting up of 2,640 MW capacity with an investment of Rs 10,000 crore within 39-42 months. It envisages four units of 640 MW based on supercritical technology.

The company’s Chairman Mr T. Shankaralingam, who recently joined the company after completing his tenure at NTPC as Chairman and Managing Director, told Business Line “The project is awaiting environmental clearance. Thereafter, we expect to take the project up for financial closure. Unlike in the past, if all clearances are in place, it can be achieved in couple of months.”

PACT WITH GLOBAL FUELS

The project, to be located on the site belonging to Andhra Pradesh Industrial Infrastructure Corporation, is looking at firing it with imported coal and has tied up with Global Fuels Pte, Singapore. It is also in talks for supply of coal from Mahanadi Coal Fields.

The idea, to have linkage from imported coal mines and suppliers and domestic coal, is to potentially use blended coal and thereby optimise the power generation cost.

“To ferry out the coal from overseas mines, the company will also set up a dedicated jetty and plans to develop the hinterland,” according to Mr T.V. Krishna, Managing Director of East Coast Energy.

“The company will take up development of about 2,500 acres for the project of the 3,500 acres of land, and have a debt equity ratio of about 80:20. We will engage in talks with a consortium of banks lead by IDBI,” Mr Shankaralingam said.

The SPV has filed for long term open access application with the Power Grid Corporation of India Ltd., and has entered into an MoU with Power Trading Corporation.

ANOTHER PROJECT

Through another special purpose vehicle, the promoters are in the process of finalising plans a 1,200 MW coal plant in Raigarh district of Chattisgarh, for which they have secured a dedicated coal block.

The availability of coal from nearby fields will help expedite the process, they maintained.

More Stories on : New Projects | Power | Andhra Pradesh

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