Purchase agreement for Boiler, Turbine and Generator (BTG) equipment signed with Harbin Power Engineering Co. Ltd, China.
Coastal Energen Private Limited, the power generating Flagship Company of Coal & Oil Group today, announced signing of the Boiler Turbine Generator (BTG) procurement contract with Harbin Power Engineering Co. Ltd, one of the largest power equipment companies in China. With this purchase agreement, Coastal Energen will be on stream in the 1st phase of their power plant project to generate 1200 MW of electricity in Tuticorin, Tamil Nadu. The 2 x 600 MW coal fired power plant on an estimated outlay of Rs. 4500 crores will be commissioned within 36 months and is slated to be one of the largest merchant power plants in India. The plant will supply power to the state electricity board and to the private sector. Backed by the Middle East based AW Rostamani Group, this power plant in TN marks Coastal Energen’s foray into power generation.
Commenting on progress of the project, Mr. Ahmed A. R. Buhari, Founder President and CEO, Coal and Oil Group of Companies said that, “Due to rapid industrialization in Tamil Nadu there has been an upsurge in electricity demand from 7,000 MW to an approximate 9,500 MW over the past three years. But supply has not kept pace during this period, triggering the current shortfall of about 1500 MW. Furthermore, the additional capacity requirement is expected to go upto 15,700 MW by the year 2016-17. We hope to complete this project on time and provide the much needed power for our State.”
He further added that, “To invest in my home state has always been a dream and with this maiden power project, I hope to be able to contribute something to energize my home state. I would like to take this opportunity to thank the Abdul Wahid Al Rostamani Group of Dubai, UAE (AWR Group), for having partnered with us by investing in an Indian project.”
Mr. A W Rostamani, Chairman, A W Rostamani Group, UAE said “We are very excited with our first major investment in India. This 1200 mw, stage one power plant in Chennai marks our entry into India’s infrastructure growth and a long term commitment to this country. We have worked hard with our partners, of over 40 years, to assemble a great team and deliver the project on time."
The foray into power generation is a step in forward integration for the Coal and Oil Group considering their experience in handling all aspects of fuel supply chain for many of the large power plants in the country including blue chip companies like TATAs, Reliance, Calcutta Electric, Torrent, KPCL, etc.
Equally passionate about their responsibility towards the society, Coal and Oil Group has already initiated steps to ensure sustainable development in the region surrounding the power plant. The project is expected to provide employment opportunities for local people. The company’s has already started canvassing in the neighboring villages and towns asking qualified persons to approach them for employment options. Health and educational facilities in the area are also expected be improved by the commissioning of the project in the district of Tamil Nadu.
About Coal & Oil Group:
C&O, a Rs. 2000 crore ‘Integrated Energy Company’, Promoted by Mr. Ahmed Buhari and his family (the co-promoters of the US$ 5.0 billion ETA - Ascon and Buharia Group) and the Al Rostamani Group of Dubai (a US$ 1.5 billion group), was established in 1998 with a vision to emerge as ‘Integrated Energy Company’.
The C&O group is currently one of the largest suppliers of steam coal into India having imported close to 6 Million tonnes last year. It supplies coal both on CIF Indian port basis as well as on delivered basis through its group company Coastal Energy Pvt. Ltd., India. Products offered include steam coal, coking coal, anthracite, petcoke, metcoke, PCI, etc., satisfying the specific requirements of power, cement, steel, chemical, paper and other industries. With a vision to be a key player in all links of the Energy chain from ‘Mine Mouth to Microwave’, the C&O group is now planning to enter into power production with coast based independent power plants.
C&O services some of the top blue chip companies in India including TATAs, Reliance, Calcutta Electric, Madras Cements, Gujarat Ambuja, Tamil Nadu News Prints, etc. The company has signed long term Fuel Supply MOU’s for over 5000 MW of upcoming power capacity in India.
Coastal Energy operates through most major ports in India having stocks of over Rs. 300 crores at any given time. The services offered to customers include sourcing, shipping, on-shore and off-shore logistics, transportation and technical consultancy. The group employs over 200 employees in three countries and has a vessel of its own, a panamax, which it employs to ensure freight security for its customers. The group is planning acquisition of more such shipping assets.
During the past decade, the C&O group has supplied various types of coal from countries like Indonesia, Russia, China, South Africa, Australia, Syria, Vietnam and US in association with major companies such as Anglo Coal, TOTAL, BHP Billiton, Shenhua, Minmetals, CNCIEC, Shanxi, Banpu Group, Kideco, Bukit Asam, Morgan Stanley and Merill Lynch. Its bankers include IOB, SBI, Corporation Bank, HSBC, BNP Paribas, Socgen, Standard Chartered, etc.
With Energy Security becoming of paramount importance for India C&O group plans to bring its expertise and investment for the benefit of its Motherland. For further details, please visit, www.coastalenergen.com, www.coalandoil.com
About the Investor
The AW Rostamani Group is a four decade old conglomerate with net assets in excess of US$1.5 billion in the Middle East region. The groups core business is centered around the automobile industry and general trade. The group comprises over 20 separate business entities amongst which the leading automotive brands from Japan and Europe in the Middle Eastern region feature prominently.
Led by the owner and founder Abdul Wahid Hasan Al Rostamani as Chairman of the AW Rostamani Holdings Co. LLC, the group comprises of five business divisions viz. Automotive, Real Estate, Logistics, Information Technology and General Industries. The Automotive division is the largest of the five divisions and includes Arabian Automobiles and related subsidiaries. The automobile division with Arabian Automobiles Co, at the forefront has quadrupled sales in the last 15 years, during this period with market leadership position in key vehicle segments, and has today reached an annual turnover of AED 3 Billion.
Mr. Rostamani’s core businesses are complemented by his active participation on several prestigious boards namely Commercial Bank of Dubai, Burj Company, Al Rawabi, Gulf News and Dubai Investments. He also has significant shares in key industries including financial services, telecoms, real estate development and service companies.
