Chennai : Coastal Energen Pvt Ltd, an arm of Dubai’s Coal and Oil group, is in discussions with power equipment makers in China, South Korea and the US for importing boilers and turbine generators for its 1080 MW thermal power project in Tuticorin in Tamil Nadu, a company official said.
“We are in discussions with different equipment suppliers for sourcing the boilers and turbine generators for the project that is expected to go on stream in 2011,” S.M. Zafrulla, managing director of Coastal Energen, told IANS.
A 70:30 joint venture between the Coal and Oil group and another Dubai industrial house – the AW Al Rostamani group – Coastal Energen has decided to go in for a 3×360 MW power generation plant based on circulating fluidized bed boilers in the first phase of the Tuticorin project.
According to Zafrulla, the company will shortly float a tender for the equipment.
“We will finalise the vendor for boiler, turbine generator and the balance of plant (BOP) by June,” he said.
Although the circulating fluidized bed combustion (CFBC) technology is costlier than the traditional thermal boilers, Coastal Energen has opted for it since it can be fired with multiple fuels and is environmental friendly, said Moosa Raza, chairman of the company’s executive committee.
Ahmed A.R. Buhari, founder president & CEO of Coastal Energen, said the Rs.45 billion project will be funded through a debt and equity mix of 70:30.
“A consortium of financial institutions led by the State Bank of India (SBI) have given in-principle nod for the project. We expect the interest to be around 11.5 percent,” he said.
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.
“We are in discussions with several parties – private companies and the Power Grid Corporation of India – for taking the power generated at the Tuticorin plant. The Tamil Nadu Electricity Board can take 25 percent of our generation,” Buhari added.
Coastal Energen has acquired 1,000 acres of land for the project, which would include the setting up of another 1,000 MW power plant once the first phase is completed.