Electricity Authority of India grants clearance for 1873 MW power plant in Tamil Nadu

Oct 20, 1999 02:00 AM

The Central Electricity Authority (CEA) of the Government of India has granted Techno-economic clearance for the 1873 MW Vembar Power Project in Tamil Nadu, India. At a cost of approximately $ 1.2 bn, the combined cycle gas turbine plant is the largest investment as well as the largest capacity project ever cleared by the CEA. Intech Global Resources Inc., Houston, a Texas-based company, will develop the prestigious power project.
Because of its competitive cost, projected tariff, superior technology and environment-friendly fuel, the Vembar Project complex has the full support of the State and Central Governments in India.

Intech, a company promoted by Non-Resident Indians with a desire to help develop their country of origin, was motivated by the success story of Enron, another Houston corporation, which has begun producing power in India. The strong judicial system and committed Governments in India are beneficial for such Infrastructure projects.

All feasibility and environmental studies of the Vembar endeavour have been completed, and contracts have been finalised. ABB Power Generation, Switzerland, will be the turn-key Engineering, Procurement and Construction contractor for the venture, while Indian Power Projects Limited, a special purpose company registered in India will implement it.
Indian Gas Limited, another local company, has been formed to develop a dedicated Port, re- gasification terminal and gas pipeline for supplying natural gas to the power plant. The site has been selected, and the land is being purchased for the project. In addition, a search is underway to identify sources for supplies of offshore LNG.

The Tamil Nadu Electricity Board has initialled a Power Purchase Agreement. The financial structure of the project is being planned with a 70:30 debt equity ratio, with the debt being raised from the Export Credit Agencies, External Commercial Borrowings and Indian Rupee Loans. All equity will be in U. S. Dollars.
International investors and financiers, especially Non-Resident Indians, have expressed a strong interest in the Vembar Project. Project developers are eager to build a strong equity consortium with strategic partners whose established strengths include power project implementation, operation maintenance of power plants and LNG terminals.

Source: Intech Global Resources Inc. via Newspage
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