Chennai, Apr 30 (UNI) Coal and Oil Group's power generating flagship company Coastal Energen today announced plans to set up a 2,000 MW power plant in Tuticorin District of Tamil Nadu at an investment of Rs 8,500 crore.
Announcing the launch of the first phase of work costing Rs 4,500 crore, Coal and Oil Group CEO Ahmed Buhari said the company was expected to start work in the middle of the year.
''We have already fully acquired 1,000 acre of land for the plant which would initially generate 1,100 MW power. The plant will supply power to the State as well as private consumers.'' Mr Ahmed said the plant was expected to be commissioned within 36 months from the start of the work.
''The construction work on the plant is expected to begin within few months. Work on second phase would also start parallel to the first phase,'' he said.
Nr Buhari saidd the plant would use environmentally-friendly technology with Costal Energen chalking out plans for protection of local ecology and inculcating corporate social responsibility.
''The company has been alloted 50 acre of separate land to set up a 400 KV station in the plant for distribution of power.
''With our agreement with Tamil Nadu Government, there is an an option for them to buy 25 per cent of power generated by us under the Merchant Power Project.
''With a view to attract FDI from the Middle East and rest of the world, the company has partnered with the multi-national billion- dollar Abdul Wahid Al Rostamani Group of Dubai,'' he said.
On the financial aspects, Company Managing Director Zafrulla said financing 'in principle' was already approved by the State Bank of India and ten other leading banks.
''All the formalities regarding financial aspects will be over by the next two months,'' he said.
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