Mutiara Coastal Energen Thermal Power Plant
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Mutiara Coastal Energen Thermal Power Plant is an operating power station of at least 1200-megawatts (MW) in Melamaruthur, Ottapidarum, Thoothukudi, Tamil Nadu, India with multiple units, some of which are not currently operating. It is also known as Melamaruthur Power Station; Tuticorin Power Station.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Mutiara Coastal Energen Thermal Power Plant | Melamaruthur, Ottapidarum, Thoothukudi, Tamil Nadu, India | 8.912716, 78.144965 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 1, Unit 2, Unit 3, Unit 4: 8.912716, 78.144965
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year |
|---|---|---|---|---|---|
| Unit 1 | operating | coal: unknown | 600 | subcritical | 2014 |
| Unit 2 | operating | coal: unknown | 600 | subcritical | 2016 |
| Unit 3 | cancelled | coal: unknown | 800 | supercritical | – |
| Unit 4 | cancelled | coal: unknown | 800 | supercritical | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Unit 1 | Coastal Energen Pvt Ltd [100%] | Coal & Oil Group |
| Unit 2 | Coastal Energen Pvt Ltd [100%] | Coal & Oil Group |
| Unit 3 | Coastal Energen Pvt Ltd [100%] | Coal & Oil Group |
| Unit 4 | Coastal Energen Pvt Ltd [100%] | Coal & Oil Group |
Financing
Source of financing: More than US$445 million in debt from consortium of 18 banks, including State Bank of India, State Bank of India associate banks, Punjab National Bank, Central Bank, Corporation Bank, Indian Bank, Bank of Baroda, and others[1]
In 2009, Coastal Energen received financial commitments for loans from a consortium of 18 banks, including State Bank of India, State Bank of India associate banks, Punjab National Bank, Central Bank, Corporation Bank, Indian Bank, and Bank of Baroda, totaling more than US$445 million.[1]
According to Coastal Energen in 2015, the company was expecting to raise around US$100 million from India Infrastructure Finance Company Limited (IIFCL) and IFCI Limited through external commercial borrowings. The company was also talking to Japanese firms - including government-run institutions, banks, and large financial institutions - to fund the expansion plan.[2]
Background
The project, has been proposed by Coastal Energen, a subsidiary of the Coal &Oil Group which was established by Ahmed Buhari. The original proposal was a phase I of 1200 MW (2 x 600 MW) and a phase II of 1600 MW.[3]
Unit 1 began commercial operation in December 2014.[4]
Unit 2 was planned for the end of 2015.[2][5] later pushed to 2016.[6] It was commissioned in January 2016.[7]
Phase II
In early 2011, Coastal Energen proposed that the 1200 MW project be expanded by the addition of two 800MW units within or adjacent to the existing plant site.[8]
As of August 2014, Phase II had not progressed in over four years and appear therefore to be abandoned. The company no longer mentions future phases on its website.[9]
An MoU was signed with the government of Tamil Nadu during Global Investor's Meeting in September 2015.[10] In January 2016, owner C&O Group said the company was in talks with Japanese firms to support the expansion.[11]
As of January 2020, there have been no further developments, and the project appears to be deferred or abandoned.
Coal supply
Coastal Energen stated that the total coal requirement for the 2,800 MW version of the plant would be 5.88 million tonnes of coal. The company stated that coal for the plant would be unloaded at Tuticorin Port and was proposing that it be carried by rail to Melathattaparai Railway Junction and then via a new 18 kilometre rail extension to the plant site.[12]
The executive summary of the EIA submitted by Coastal Energen to the Tamil Nadu Pollution Control Board stated that the 70% of coal for the total project would be from Coal India and sourced from Orissa and 30% imported from unspecified sources in Indonesia.[13]
In April 2015, the company said it was in talks with Indonesia to supplement its domestic coal supply. The plant's monthly coal consumption was expected to be up to 500,000 tonnes once the second unit of 600-Mw gets commissioned by the end of 2015.[2]
Power purchase agreement uncertainty
In January 2012, it was reported that the lack of a power purchase agreement with TANGEDCO for the 1200MW plant had unsettled at least one investor. The family of B. S. Abdur Rahman had decided to buy the 15% share of the company held by the Dubai-based investor, A. W. Rostamani group. It was also reported that Coastal Energen "has signed a PPA with Tata Power, but whether the company will be able to sell power to Tata Power is as yet uncertain. This is because Tamil Nadu, using its power under Section 11 of the Electricity Act, 2003, does not allow a generator in the State to sell power to customers outside the State. Whether an “inter-State power producer” like Coastal Energen could be brought under the Section 11 is a subject awaiting the court's verdict."[14]
In March 2014, it was reported that construction on Phase I of the power station was nearly complete, although there would be delays in its operation due to issues around how to bring coal to the plant from lack of coal transport infrastructure in the area. However, Coastal Energen said it is committed to supplying power from one of its two units (600 MW) to Tamil Nadu’s electricity generation and distribution utility, Tangedco, by mid-2015.[8]
NCLT proceedings & mothballing
In February 2022, the Chennai bench of the National Company Law Tribunal (NCLT) admitted State Bank of India (SBI)’s plea to initiate insolvency proceedings against power producer Coastal Energen after three years of back-and-forth between lenders, the company, and the court. The tribunal admitted the petition filed originally in October 2018 and appointed Radhakrishnan Dharmarajan as the insolvency resolution professional. The account had been classified as a non-performing asset on March 31, 2017 after the company defaulted on loans. SBI moved the NCLT against the company in October 2018.[15]
During a May 2022 heatwave, energy minister RK Singh held conferences with companies, banks, and state officials to discuss restarting commissioned but “non-operational” units. The plants considered appeared to include Salaya power plant, Butibori Power Project, Nasik RattanIndia Thermal Power Project, Simhapuri Thamminapatnam power station, Meenakshi Energy Thermal Power Project, Mutiara Coastal Energen Thermal Power Plant, and Cuddalore IL&FS power station. Revival of the “imported coal-based units” at the power station was going to be discussed with “lenders, NTPC and the state governments.”[16]
In November 2023, the India Ministry of Power said they were planning to increase coal generation capacity in the country by about 12 GW by the end of March 2024 to keep up with an alleged rapid increase in electricity demand.[17] The Ministry wrote a letter to state-owned utilities encouraging them to participate in National Company Law Tribunal proceedings to rescue stressed power plants, and identified the 2 x 600 MW Thermal Power Project by Coastal Energen as a project that was "ready for takeover."[18]
According to reporting from August 2024, Adani Power was awaiting NCLT approval of the company’s resolution plan to take over Coastal Energen.[19] The NCLT subsequently approved a Rs 3,336 crore resolution plan submitted by a consortium of Dickey Alternative Investment Trust and Adani Power.[20]
In September 2024, following an appeal filed by a former director of Coastal Energen, the National Company Law Appellate Tribunal (NCLAT) issued an interim order halting the consortium’s resolution plan. The Supreme Court then overruled the interim order, allowing the Dicky Trust-Adani Power consortium to operate the power station until the NCLAT passes a final order.[21]
Contact details
Coastal Energen Pvt. Ltd
7th Floor, Buhari Towers,
4, Moores Road,
Chennai - 600 006. India
Phone: +91 44 4296 4296
Fax: +91 44 4296 4297
Website: http://www.coastalenergen.com/
Articles and Resources
References
- ↑ 1.0 1.1 "Banks start committing to US$865m India power plant | News | IJGlobal". ijglobal.com. Retrieved 2020-10-21.
- ↑ 2.0 2.1 2.2 "Coastal Energen raises Rs 1,950 cr for Mutiara power project from SBI-led consortium," Business Standard, Apr 15, 2015
- ↑ Coastal Energen, "About Us", Coastal Energen website, accessed January 2012.
- ↑ "Coastal Energen commences commercial operations of 600-MW thermal power project in TN," Exim, Dec 28, 2014
- ↑ "Broad Status Report," India Central Electrical Authority, November 2015
- ↑ "Mutiara Thermal Power Plant," Coal and Oil, Jan 5, 2016
- ↑ "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, March 2016
- ↑ 8.0 8.1 Coastal Energen, "Executive Summary of the EIA Report: Proposed Expansion of 2 x 800 MW Super Critical Coal Based Thermal Power Plant Within existing/adjacent to 2 x 600 MW plant Site At Melamaruthur Village, Ottapidaram Taluk, Tuticorin District", Tamil Nadu Pollution Control Board, February 2011.
- ↑ "Coastal Energen’s plant 95 per cent complete, but no means to bring coal," The Hindu, March 14, 2014.
- ↑ "Mutiara Thermal Power Plant," C&O Group website, accessed June 2017
- ↑ "Mutiara Thermal Power Plant," Coal and Oil, Jan 5, 2016
- ↑ Tamil Nadu Pollution Control Board, "Minutes of the Public Hearing Meeting held on 03.05.2011", Tamil Nadu Pollution Control Board, May 2011, page 1.
- ↑ Coastal Energen, "Executive Summary of the EIA Report: Proposed Expansion of 2 x 800 MW Super Critical Coal Based Thermal Power Plant Within existing/adjacent to 2 x 600 MW plant Site At Melamaruthur Village, Ottapidaram Taluk, Tuticorin District", Tamil Nadu Pollution Control Board, February 2011, page 4.
- ↑ "Coastal Energen's TN project facing PPA hurdle", Business Line, January 20, 2012.
- ↑ "NCLT admits SBI’s insolvency plea against Coastal Energen," Financial Express, February 8, 2022
- ↑ “Power Minister RK Singh to meet states, lenders on reviving stressed plants,” Economic Times, May 2, 2022
- ↑ "India to add 12 GW thermal capacity by March: RK Singh," Livemint, November 6, 2023
- ↑ "Advisory to all States/GENCOs regarding participation in CIRP of NCLT for taking over of Stressed Thermal Power Assets," Government of India Ministry of Power, November 1, 2023
- ↑ “Adani Power plans capacity expansion via inorganic route,” Economic Times, August 2, 2024
- ↑ “Adani Power to invest Rs 18,000 crore to triple Kawai Plant capacity,” Economic Times, September 4, 2024
- ↑ “Coastal Energen insolvency: SC allows Dickey-Adani to operate plant for now,” Business Standard, September 12, 2024
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
