Coastal Energen Private Limited, the power generating flagship company of Coal & Oil Group, today said that company has concluded financial closure for its upcoming Rs 4,300 crore power project in Tuticorin, Tamil Nadu.
The project with a debt component of about Rs 3,450 crore has been funded by a consortium of 16 banks and financial institutions led by the State Bank of India. The loan carries tenure of 15 years and an interest of 12 per cent.
Ernst & Young, India have acted as lead arrangers and financial advisors for the project.
The 2 x 600 mega watt (Mw), coal fired power plant at Tuticorin will be commissioned within 36 months and has provision to expand upto 4000 Mw.
The plant will supply power to the state electricity board and to the private sector, for which a 700 Mw contract has been signed with Tata Power. This power plant marks Coastal Energen’s foray into power generation in the State.
Coastal Energen has been promoted by Ahmed Buhari and the Coal & Oil Group with a 30 per cent strategic stake being held by the AW Rostamani Group of Dubai, UAE.
C&O is a Rs 2,000 crore Integrated Energy Company, Promoted by Ahmed Buhari and his family (the co-promoters of the $ 5 billion ETA - Ascon and Buharia Group) and the Al Rostamani Group of Dubai (a $ 1.5 billion group). It was established in 1998.