Coastal Energen’s first 600 MW unit feeds power to Tamil Nadu grid

Coastal Energen has started commercial operations with the first 600 MW unit of its thermal power project starting power supply to the state grid.

The company which is setting up a 1,200 MW power project in Tuticorin will commission the other 600 MW unit in the second half of 2015, according to Ahmed AR Buhari, founder President and CEO, Coastal Energen.

Coastal Energen, a part of the Dubai-based Coal and Oil Group, has entered into a 15-year agreement with the public sector Tamil Nadu Generation and Distribution Corporation to supply power at a levellised tariff of ₹ 4.91 a unit.

Discussions are on for a similar agreement for the second unit but the options are still open for the company to enter into a short term agreement or sell power to other potential customers, he said.

Of the total estimated cost of ₹ 7,600 crore, making it one of the largest private sector investments in the state, over ₹ 6,200 crore has been spent. The debt-equity is about 76:24 and is likely to settle at about 80:20. Coastal Energen has over 1,080 acres of land and has long term plans to expand power generation to 5,000 MW, he said.

Coastal Energen hopes to set up a jetty and a kilometre-long pipe conveyor to the plant to bring in the imported coal for the plant. Also, the Indian Railways has sanctioned a railway siding to within a kilometre of the plant. But for now it will depend on a railway line available upto 10 km from the power plant to bring in the imported coal from the Tuticorin Port.

By Product

Hyderabad-based My Home Cement is likely to invest ₹ 250 crore in a cement grinding unit in the vicinity to use the fly ash generated from the power plant, according to Buhari.

The plan is in the preliminary stage but will effectively address environmental concerns of over 250,000 tonnes of fly ash that will be generated annually from the power plant, he said.

COMMENT NOW