Dubai C&O secures funding for India power plant
Dubai, December 23, 2013
Dubai-based Coal & Oil Group (C&O) said has secured additional funding of Dh1 billion ($250 million), to complete its 1200 MW Independent Power Plant (IPP), presently under construction in India.
Coal & Oil Group is a $750 million integrated energy company involved in various aspects of energy supplies, including coal trading, mining, shipping, logistics and power generation.
Established in Dubai in 1998, it is one of the largest suppliers of coal to India. Its maiden power project, through its subsidiary, Coastal Energen, is a logical extension of the company's core Energy Management.
The Mutiara Thermal Power Plant, coming up at Tuticorin in the south Indian state of Tamil Nadu, aims to address the 5,000 MW power shortage in the state. The plant owes its development to Coastal Energen Private Ltd, the power generating flagship company of the C&O, and perhaps the region's second-largest private investor, with capital expenditures exceeding Dh4.25 billion.
The IPP will benefit from close proximity to both a major city (Tuticorin) and major port, as well as excellent road, rail and air connectivity. It is currently the first and only mega project that has commenced out of the 30 which were planned in the past 15 years, said a statement from C&O.
Commenting on the immense potential of the project, Ahmed Buhari, the founder, president and group CEO, said, "India, and particularly, the state of Tamil Nadu, is currently facing severe power shortage. Our power project will be able to partly mitigate the hardships being faced by the state. In fact, we have committed to supplying a large part of our generation to the state grid."
Currently, the largest construction in the region, the Mutiara power plant has obtained Dh3.25 billion in funding from a consortium of Indian banks led by the State Bank of India.
This latest sanction will contribute to last mile funding and address cost escalation due to recent steep rupee devaluation, among other things. The power plant is slated for completion by June 2014, the statement added.-TradeArabia News Service