Dubai's Coal & Oil gets Rs 1,600 cr from public sector banks

The money will be used to complete its 1,200 Mw plant, presently under construction in Tuticorin, Tamil Nadu

Dubai-based Coal & Oil (C&O) Group has secured additional funding of approximately Rs 1,600 crore from public sector banks to complete its 1,200 Mw Independent Power Plant (IPP), presently under construction in Tuticorin, Tamil Nadu.

The project, which is being developed at a cost of around Rs 6,800 crore is developed by Coastal Energen Pvt Ltd, the power generating Flagship Company of the Coal & Oil Group.

The Mutiara power plant has obtained Rs 5,200 crore 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, according to company's statement.

Developed in the Tuticorin District, Tamil Nadu, the Mutiara Thermal Power Plant aims to address the 5,000 Mw power shortage in the state.

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.

Ahmed Buhari, Founder, President and CEO of the Coal and Oil Group commented that the company has committed to supply a large part of our generation to the state grid, considering the State is facing huge power shortage.