Coal & Oil Group, which is setting up a Rs 5,000 crore power plant in Tamil Nadu through Coastal Energen Pvt Ltd, is planning to buy back 15 per cent of the stake from the Dubai-based A W Rostamani Group. The company plans to sell the same to a financial institution in Europe.
While 15 per cent in the company is held by the Rostamani Group, the rest is with Buhari and his family. The Rostamani Group has invested around Rs 140 crore in the company.
“The process (buy back) will be over in the next two months and we have also initiated dialogue with financial institutions in Europe to sell the same. The value of the buyback is yet to be decided,” said Ahmed A R Buhari, founder president and chief executive officer.
The project is funded through an 80 per cent debt and 20 per cent equity. The equity portion is around Rs 850 crore.
Coastal Energen Pvt Ltd is the power generating flagship company of the Coal and Oil Group. It is setting up a 1,200 Mw Mutiara Thermal Power Plant in Tuticorin district with an investment of around Rs 5,200 crore. The power plant is expected to go on full stream before March 2013. The company has already signed an agreement with Tata Power to sell a portion of the power produced.
Also Read
“We want to sell a major portion to the Tamil Nadu Electricity Board. However, the board is yet to sign a power purchase agreement,” he said. Tamil Nadu is facing power shortage of 4,500-3,500 Mw.
Buhari said the company had initiated dialogue with other state governments in the south to sell power.
The company was ready to take up Phase II and III at the same site, which will be another 3,200 Mw.
The company was also planning to enter solar energy and aimed to get involved in transmission and distribution, coal mining, which will make it a fully integrated power company.
