Coastal Energen's 1,200-mw power plant at Tuticorin in Tamil Nadu will see financial closure in two months, co-promoter Coal & Oil Group said.
Ahmed A R Buhari, founder president and chief executive officer of Coal & Oil Group, said a consortium of 19 banks, led by State Bank of India, has agreed to lend to the project. The first phase of the coal-fired thermal merchant power project, with a capacity of 1,200 mw, will need investments of Rs 4,500 crore, of which the debt component is Rs 3,450 crore. "The equity component of Rs 1,050 crore will come from accruals and investment from parent companies," Buhari said.