Duba-based Coal & Oil Group said it has obtained additional financing to complete the Mutiara Thermal Power Plant located in Tuticorin, Tamil Nadu in India. The funding amount was about $250 million or Dhs. 1 billion. A consortium of Indian banks led by the State Bank of India has provided funding amounting to Dhs. 3.25 billion for the power plant. A statement from the company said the latest proceeds will comprise the "last mile funding" and address the rising cost brought about by the steep devaluation of the rupee. The power plant is set to be completed by June next year.
Coal & Oil Group is an integrated energy firm established in 1998. It is one of the India's biggest suppliers of coal. It is engaged in the business of supplying energy, such as coal trading, shipping, mining, logistics and power generation.
The 1,200 megawatt Independent Power Plant or IPP seeks to address the state's 5,000 megawatt power shortage. The statement said the plant was developed by Coastal Energen Pvt Ltd, Coal & Oil Group's power generating Flagship Company. With capital expenditures going over $1.1 billion or Dhs. 4.25 billion, the statement said Coastal Energen is most likely the second largest private investor in the region.
The power plant's proximity to a major city and a major port, excellent road, rail and connectivity is beneficial for the IPP. Of the 30 projects planned in the last 15 years, the IPP is the first and only project that has started, the statement said.
Coal and Oil Group Founder, President and CEO Ahmed Buhari said in a statement, "India, and particularly, 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."
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