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Coastal Energen loses Dubai partner 

Tuticorin Power Plant To Go Live In 13;Co Yet To Find Buyers 

TIMES NEWS NETWORK 

Chennai: Power generating firm Coastal Energen whose 1,200 megawatt (MW) thermal plant in Tuticorin is scheduled to go live in March 2013 said its partner,Dubai-based Al Rostamani Group,is exiting the venture because of the delay in finding buyers for the electricity.
Coastal Energen,a part of the Dubai-based Coal & Oil Group,said it will buy back Rostamanis 15% stake.We are in discussions to sell a part or whole of the 15% to private investors, said Ahmed A R Buhahari said it plans to increase the capacity at its maiden project to 3,600 MW,by launching two more phases of expansion,soon after the first phase of 1,200 MW is commissioned.The company has so far invested Rs 4,000 crore into the project and expects to complete the first phase,with a total investment of Rs 5,200 crore.A consortium of 16 banks,led by State Bank of India,is funding the project.
Rostamani may have looked at an exit as there is a delay in signing power purchase agreement (PPA).We want to sell most of the capacity to TNEB (Tamil Nadu ri,CEO and promoter of Coastal Energen,whose parent group is into coal supplies.
The company has so far found only one buyer,Tata Power for 500-700 MW.
Amid such concerns,BuElectricity Board).Were confident about signing one,though its a time-consuming process, Buhari said.Tamil Nadu faces a power shortage of over 4,000 MW,however,it has refrained from signing new deals with private players.
The company,which tied up with Chinas Harbin Electric for boiler,turbine and generator equipment for the current phase,said 85% of the equipment have reached the site.Coal & Oil Group is a Rs 2,200-crore integrated energy company that is involved in coal supplies,shipping and logistics and power generation.

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