Dubai-based Coal & Oil Group has received €199m in additional funding for its 1,200MW Mutiara thermal power plant in Tamil Nadu, India.
The under construction independent power plant will feature two 600MW coal based units in the Tuticorin District and requires 5t of coal to generate that capacity.
To be completed by June 2014, the project owes its development to Coastal Energen with capital expenditures of more than €845m.
The plant has already secured around €646.3m in funding from a consortium of banks led by the State Bank of India, while the latest funding will address cost escalation due to recent steep rupee devaluation, among other things.
The project will benefit from close proximity to Tuticorin and a major port, in addition to transportation modes of road, rail and air connectivity.
Coastal Energen, the power generating company of Coal & Oil, is developing the project, which is aimed at addressing the 5,000MW power shortage in the state.
In 2010, Energen began work on the first phase (1,200MW) of the broader Mutiara thermal power plant, the capacity of which is likely to be increased to 2,400MW in the next phase.
A power purchase agreement with Tata Power is already in place for 500-700MW of project's output, while contracts for the supply of BTG, civil and structural works of main plant, coal handling plant, ash handling plant and other associated works have already been awarded.
Coal & Oil Group founder, president and CEO Ahmed Buhari said India, and in particular, the state of Tamil Nadu, is currently facing severe power shortage.
"Our power project will be able to partly mitigate the hardships being faced by the state. In fact, we have committed to supplying a large part of our generation to the state grid," said Buhari.