SRM Energy plans 2000 Mw plant in TN

The plant would come up in Cuddalore district.

Mumbai-based SRM Energy, a Spice Energy group, is planning to set up an 1,800 to 2,000 mega watt (Mw) coal-based thermal power plant in Cuddalore district of Tamil Nadu. The company would invest around $2 billion (around Rs 9,200 crore) in the project.

Speaking to Business Standard, P Srinivasan, chief operating officer, SRM Energy said the company would fund the project through debt (80 per cent) and equity (20 per cent). The estimated time for the project is around five years. The first unit will commence operations by 2012. The company is also planning to acquire 1,000 acre of land, negotiations for which are in the final stage, he added.

Besides, the company is planning to construct a jetty at the Cuddalore port or close to the project location to handle ships, which would be carrying imported coal. It has signed a coal sale purchase agreement with an Indonesia-based company.

On the power purchase agreement, he said talks were in final stages. The Tamil Nadu Electricity Board (TNEB) is expected to buy 250 Mw power, which might be increased to 500 Mw. The company is also in talks with the Tata Power Trading Corporation and Power Trading Corporation of India, said Srinivasan.

He said the company was also planning to set up a 2,000 Mw pithead coal-based power plant in east India with an investment of $2 billion.