October 07, 2008

Coastal Energen to import equipment for Tuticorin power plant

IANS reported that Coastal Energen Private Limited 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.

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.

Mr SM Zafrulla MD of Coastal Energen said that "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." He added that it 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 Mr Zafrulla, Coastal Energen will shortly float a tender for the equipment. He said that "We will finalize the vendor for boiler, turbine generator and the balance of plant by June 2008."

Mr Moosa Raza chairman of Coastal Energen’s executive committee said that although the circulating fluidized bed combustion 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.

Mr Ahmed AR Buhari founder president & CEO of Coastal Energen said that the INR 45 billion project will be funded through a debt and equity mix of 70:30. He added that "A consortium of financial institutions led by the State Bank of India have given in principle nod for the project. We expect the interest to be around 11.5%."

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.