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Tue 24 Dec 2013 01:02 PM

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Dubai firm secures $250m funds for Indian power plant

Mutiara Thermal Power Plant aims to address the 5,000MW power shortage in Tamil Nadu state

Dubai firm secures $250m funds for Indian power plant
(Photo for illustrative purposes only)

Dubai-based Coal & Oil (C&O) Group has announced that it has secured additional funding of about AED1bn ($250m), to complete its 1200MW power plant in Tamil Nadu, India.

The Mutiara Thermal Power Plant aims to address the 5,000MW power shortage in the state and is the only mega project that has commenced out of the 30 which were planned in the past 15 years, a statement said.

The power plant is slated for completion by June 2014, it added.

Ahmed Buhari, founder, president and CEO of the Coal and Oil Group, said: "India, and particularly, the state of Tamil Nadu, is currently facing severe power shortage.

"Our power project will be able to partly mitigate the hardships being faced by the state. In fact, we have committed to supplying a large part of our generation to the state grid."

Currently, the largest construction in the region, the Mutiara power plant has obtained AED3.25 billion in funding from a consortium of Indian banks led by the State Bank of India.

"This latest sanction will contribute to last mile funding and address cost escalation due to recent steep rupee devaluation, among other things," the statement said.

Established in Dubai in 1998, Coal & Oil Group is one of the largest suppliers of coal to India. The Mutiara power project is being developed through its subsidiary, Coastal Energen Pvt Ltd.

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