Coastal Energen achieves financial closure

Coastal Energen Private Limited, the power generating flagship company of Coal & Oil Group, has achieved financial closure for its proposed Rs 4,300 crore power project at Tuticorin in Tamil Nadu. The project with a debt component of about Rs 3,450 crore has been funded by a consortium of 16 banks and financial institutions led by State Bank of India.

The loan carries a tenure of 15 years and an interest of 12 per cent. Ernst & Young was the lead arranger and financial adviser. The 1,200 Megawatt coal-fired power plant will be commissioned within 36 months and has a provision to expand up to 4,000 Mw. The plant will supply power to the state electricity board and to the private sector, for which a contract has been signed with Tata Power for 700 Mw.