Mutiara Coastal Energen Thermal Power Plant

From Global Energy Monitor

Mutiara Thermal Power Plant (Coastal Energen) (previously referred to as the Melamaruthur Power Station) is a proposed 1200-megawatt (MW) coal-fired thermal power plant in Tamil Nadu, India.

Location

The map below shows the location of the power station.

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Background

The project, has been proposed by Coastal Energen, a subsidiary of the Coal &Oil Group which was established by Ahmed Buhari. The original proposal was a phase I of 1200 MW (2 x 600 MW) and a phase II of 1600 MW.[1]

Unit 1 began commercial operation in December 2014.[2]

Unit 2 is planned for the end of 2015.[3][4] later pushed to 2016.[5] It was commissioned in January 2016.[6]

Phase II

In early 2011, Coastal Energen proposed that the 1200 MW project be expanded by the addition of two 800MW units within or adjacent to the existing plant site.[7]

As of August 2014, Phase II had not progressed in over four years and appear therefore to be abandoned. The company no longer mentions future phases on its website.[8]

An MoU was signed with the government of Tamil Nadu during Global Investor's Meeting in September 2015.[9] In January 2016, owner C&O Group said the company was in talks with Japanese firms to support the expansion.[10]

As of January 2020, there have been no further developments, and the project appears to be deferred or abandoned.

Finance

In 2009, Coastal Energen received financial commitments for loans from a consortium of 18 banks, including State Bank of India, State Bank of India associate banks, Punjab National Bank, Central Bank, Corporation Bank, Indian Bank, and Bank of Baroda, totaling more than US$445 million.[11]

According to Coastal Energen in 2015, the company was expecting to raise around US$100 million from India Infrastructure Finance Company Limited (IIFCL) and IFCI Limited through external commercial borrowings. The company was also talking to Japanese firms - including government-run institutions, banks, and large financial institutions - to fund the expansion plan.[3]

Coal supply

Coastal Energen states that the total coal requirement for the 2800 MW version of the plant would be 5.88 million tonnes of coal. The company has stated that coal for the plant would be unloaded at Tuticorin Port and is proposing that it be carried by rail to Melathattaparai Railway Junction and then via a new 18 kilometre rail extension to the plant site.[12]

The executive summary of the EIA submitted by Coastal Energen to the Tamil Nadu Pollution Control Board states that the 70% of coal for the total project would be from Coal India and sourced from Orissa and 30% imported from unspecified sources in Indonesia.[13]

In April 2015, the company said it was in talks with Indonesia to supplement its domestic coal supply. The plant's monthly coal consumption is expected to be up to 500,000 tonnes once the second unit of 600-Mw gets commissioned by the end of 2015.[3]

Power purchase agreement uncertainty

In January 2012, it was reported that the lack of a power purchase agreement with TANGEDCO for the 1200MW plant had unsettled at least one investor. The family of B. S. Abdur Rahman had decided to buy the 15% share of the company held by the Dubai-based investor, A. W. Rostamani group. It was also reported that Coastal Energen "has signed a PPA with Tata Power, but whether the company will be able to sell power to Tata Power is as yet uncertain. This is because Tamil Nadu, using its power under Section 11 of the Electricity Act, 2003, does not allow a generator in the State to sell power to customers outside the State. Whether an “inter-State power producer” like Coastal Energen could be brought under the Section 11 is a subject awaiting the court's verdict."[14]

In March 2014, it was reported that construction on Phase I of the power station was nearly complete, although there would be delays in its operation due to issues around how to bring coal to the plant from lack of coal transport infrastructure in the area. However, Coastal Energen said it is committed to supplying power from one of its two units (600 MW) to Tamil Nadu’s electricity generation and distribution utility, Tangedco, by mid-2015.[7]

Project Details

Sponsor: Coastal Energen
Parent: C&O Group (The Coal and Oil Group)
Location: Melamaruthur village, Ottapidaram taluk, Tuticorin district, Tamil Nadu
Coordinates: 8.912716,78.144965 (approximately)
Status: Operating (Units 1-2); Cancelled (Units 3-4)
Nameplate capacity: Phase I: 1,200 MW (Units 1-2: 600 MW); Phase II: 1,600 MW (Units 3-4: 800 MW)
Type: Subcritical (Units 1-2); Supercritical (Units 3-4)
In service: 2014 (Unit 1), 2016 (Unit 2)
Coal Type:
Coal Source: 70% local coal from Coal India mine in Orissa and 30% imported from unspecified sources in Indonesia[15]
Estimated annual CO2: 7,096,441 tons for the 1200MW project
Source of financing: More than US$445 million in debt from consortium of 18 banks, including State Bank of India, State Bank of India associate banks, Punjab National Bank, Central Bank, Corporation Bank, Indian Bank, Bank of Baroda, and others[11]
Permits and applications:

Contact details

Coastal Energen Pvt. Ltd
7th Floor, Buhari Towers,
4, Moores Road,
Chennai - 600 006. India
Phone: +91 44 4296 4296
Fax: +91 44 4296 4297
Website: http://www.coastalenergen.com/

Resources and articles

Related GEM.wiki articles

References

  1. Coastal Energen, "About Us", Coastal Energen website, accessed January 2012.
  2. "Coastal Energen commences commercial operations of 600-MW thermal power project in TN," Exim, Dec 28, 2014
  3. 3.0 3.1 3.2 "Coastal Energen raises Rs 1,950 cr for Mutiara power project from SBI-led consortium," Business Standard, Apr 15, 2015
  4. "Broad Status Report," India Central Electrical Authority, November 2015
  5. "Mutiara Thermal Power Plant," Coal and Oil, Jan 5, 2016
  6. "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, March 2016
  7. 7.0 7.1 Coastal Energen, "Executive Summary of the EIA Report: Proposed Expansion of 2 x 800 MW Super Critical Coal Based Thermal Power Plant Within existing/adjacent to 2 x 600 MW plant Site At Melamaruthur Village, Ottapidaram Taluk, Tuticorin District", Tamil Nadu Pollution Control Board, February 2011.
  8. "Coastal Energen’s plant 95 per cent complete, but no means to bring coal," The Hindu, March 14, 2014.
  9. "Mutiara Thermal Power Plant," C&O Group website, accessed June 2017
  10. "Mutiara Thermal Power Plant," Coal and Oil, Jan 5, 2016
  11. 11.0 11.1 "Banks start committing to US$865m India power plant | News | IJGlobal". ijglobal.com. Retrieved 2020-10-21.
  12. Tamil Nadu Pollution Control Board, "Minutes of the Public Hearing Meeting held on 03.05.2011", Tamil Nadu Pollution Control Board, May 2011, page 1.
  13. Coastal Energen, "Executive Summary of the EIA Report: Proposed Expansion of 2 x 800 MW Super Critical Coal Based Thermal Power Plant Within existing/adjacent to 2 x 600 MW plant Site At Melamaruthur Village, Ottapidaram Taluk, Tuticorin District", Tamil Nadu Pollution Control Board, February 2011, page 4.
  14. "Coastal Energen's TN project facing PPA hurdle", Business Line, January 20, 2012.
  15. Coastal Energen, "Executive Summary of the EIA Report: Proposed Expansion of 2 x 800 MW Super Critical Coal Based Thermal Power Plant Within existing/adjacent to 2 x 600 MW plant Site At Melamaruthur Village, Ottapidaram Taluk, Tuticorin District", Tamil Nadu Pollution Control Board, February 2011, page 4.
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