Tneb, Spic Sign Ppa For Tuticorin Project

The Tamil Nadu Electricity Board (tneb) and Spic Electric Power Corporation Pvt Ltd (sepc) yesterday signed the power purchase agreement (PPA) for the 525 mw coal-fired power plant to be located at Tuticorin.

Under the privatisation programme, the Rs 2,324 crore project, cleared by the Central Electricity Authority, had been offered to Tamilnadu Petroproducts Ltd(TPL) , a group company of Spic. The plant is the fourth stage of the expansion programme to the existing facility of TNEB. A Spic press release said here yesterday that the project would be commissioned by the first quarter of 2002 and would generate 4 billion units of energy to be supplied to Tamil Nadu grid. TPL will have the largest stake of 26 per cent in the project.

The equity of the company would be subscribed by tpl to the extent of 26 per cent, making it the single largest share holder. The company had already identified other share holders with whom agreements would be signed shortly. A consortium of world renowned contractors would undertake the construction.

The supplier of fuel (imported coal) had also been identified, it said.