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Friday, 27 February 09
COASTAL ENERGEN INKS PACT WITH CHINESE FIRM FOR POWER EQUIPMENT


My Digital Fc reported that, Dubai-based Coal and Oil Group, which is setting up a 1,200MW thermal power plant in Tamil Nadu, has tied-up with China-based leading power equipment maker Harbin Power Engineering Company to procure boiler, turbine and generator equipment at a cost of $450 million.

The purchase agreement was signed between Chennai-headquartered Coastal Energen, power generation arm of Coal and Oil Group, and Harbin Power Engineering on Wednesday.

The $500-million Coal and Oil Group, a fuel supplier to power projects, has forayed into power generation with plans to set up its first 2 x 600 thermal power project at Tuticorin in southern part of Tamil Nadu on an estimated investment of Rs 4,500 crore. The project is expected to be commissioned in 36 months. While the Chinese firm has proven records in supplying advanced equipment for power projects, the key rationale behind the tie-up is to achieve early delivery schedule on the back of upsurge in demand for power in the state on account of rapid industrialisation, according to Ahmed A R Buhari, founder president and chief executive officer of Coal and Oil Group.

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